US Treasury auction "smashed"! Interest rates soared to 5.1%, market sentiment exploded, and US stocks plummeted!
The recently concluded 20-year Treasury auction was hard to describe – no one wanted to buy, and the government had to raise prices to issue bonds, with interest rates soaring to 5.104%, the highest since last November 📈.
This situation released three signals ⚠️:
1️⃣ The market does not want to touch long-term bonds anymore.
2️⃣ Institutions are passively taking on the burden, with no choice.
3️⃣ Investors are increasingly losing confidence in inflation and fiscal explosion.
Result? The market got scared, and US stocks and risk assets instantly plummeted!
This wave of interest rate shock may just be the beginning...