Stock Market "Bounce" Crumbles - Treasury Yields Spike Back To Danger Levels

As expected, yesterday's bounce that gave so many of the "buy the f'ing dippers" hope after the carnage on Monday has now fizzled to nothing with today's dead cat event.  And, 10 Year Treasury Yields are spiking back above 2.85%, which was one of the major catalysts for the recent crash because it suggests that the Federal Reserve may accelerate interest rate hikes this year (something I have been warning about for some time).  February is developing into a very tense month indeed...


U.S. stocks remained on unsteady footing as the bout of volatility that’s gripped global financial markets persisted amid signs that the run-up in Treasury yields has yet to run its course.

Pressure Wednesday came from a weak 10-year note auction, sending the rate toward a four-year high that days ago sparked the biggest equity selloff in seven years. Stocks swung between gains and losses throughout the session. In the end, a late bout of selling pushed the S&P 500 Index lower, while the Dow Jones Industrial Average also finished lower after going on a 500-point ride. Heavy selling in megacap technology shares left the Nasdaq indexes in the red.

The yield surge sparked concern the Federal Reserve would accelerate its tightening schedule. Chicago Fed President Charles Evans signaled as much Wednesday, saying sustained inflation could force more hikes. Michael Ball, president and lead portfolio manager of Colorado-based Weatherstone Capital Management Inc., blamed the pickup in Treasury rates for the slide.



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