The S&P 500 has prolonged its decline to 0.8% after rising by 1.8% earlier. The set off on the turnaround right now was robust financial information and a rout in bonds that kicked off within the UK and prolonged on a horrible Treasury public sale.
US 10-year yields are actually up 9.8 bps to three.98%. Clearly the 4% degree looms.
This seems increasingly like one thing is breaking and somebody getting liquidated however there are not any actual rumors about that doing the rounds.
Alternate options:
- Central banks and reserve managers promoting bonds to defend currencies, particularly in rising markets
- Portfolio redemptions from levered funds associated to quarter finish
If the latter is an element, then it ought to relent after the flip of the calendar into October, and even simply earlier than that.
Shares cannot flip till bonds not less than stabilize.
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