According to PANews, the weak demand for the U.S. 20-year Treasury auction has led to declines in the stock market, bond market, and foreign exchange market. Deutsche Bank analyst George Saravelos stated that this is a signal of foreign buyers collectively avoiding U.S. Treasury assets.
He pointed out that foreign investors are unwilling to provide funding to the U.S. government at current prices, and rising financing costs are putting pressure on the stock market. Unless there are significant adjustments to the Republican fiscal reconciliation bill, the value of U.S. Treasuries would need to decline significantly to attract investors.
As a result, the S&P 500 index's intraday decline widened to 1.5%, the yield on the 10-year U.S. Treasury rose to 4.607%, the highest since February 13, and the U.S. dollar index fell by 0.5%.
