The 30 year bond auction came in much better than expectations and there was a relief move which saw the yield move down to 3.490%. The yield has since bounce back to 3.505% currently, but that is still off the high of 3.572% and near the closing level from yesterday
That's the good news. The not so good news is it to yield remains at around 3.76% that's up over 18 basis points on the day.
Will the better auction bailout or at least stall the stock market slide and dollar rise?
The NASDAQ index is down -448 points or -3.65% at 11819. The NASDAQ reached a low of 11756.93. The S&P reached a low of 3978.08 but is trading now at 3994.48 down -116 points or -2.82%. So there is a little bit of a bounce.
Looking at the US dollar, the EURUSD is trading at the parity level after reaching a low of 0.9988. The GBPUSD is also up similarly. That is not a whole lot, but there is a little stall.
With the 3 and 10 year auction having tepid investor interest and with the higher CPI today, one might've expected a similar response. However, that was not the case. Will it turn around the markets at least in short-term? It's trying but there still is plenty work to do.
