Bonds & Stocks Churn Before 10 Yr Auction – Europe Market Wrap
As the US Treasury got ready to auction off a record $42 billion worth of 10-year bonds, which could signal if the recent selloff was excessive, stocks and bonds saw fluctuations.
US equity futures posted small moves. Ford rallied on stronger results in premarket trading, while New York Community Bank was set for more losses. Europe’s STOXX 600 slipped 0.3%.
On Wednesday, US government bonds traded flat ahead of the sale, with the 10-year yield hanging at 4.10%. The current auction follows a sale of three-year notes, which saw higher-than-expected demand.
Treasuries have stabilised after a two-day slump caused by strong economic data, and market bets on the speed of Fed rate cuts were reduced. Central bank officials maintained their cautious tone on Tuesday, indicating that more progress is needed on inflation, though rate cuts may be possible later this year.
Israel’s Channel 13 reports an Israeli official saying that some of the demands made by Hamas in the counterproposal are entirely unacceptable.