A lower-than-expected yield at today’s 5-year auction didn’t do anything to stem the pain in the bond market. The auction stopped through by 1.2 bps but the rest of the market used that bounce as an entry to sell more. 5s are now up 7.1 bps on the day to 4.69%. It’s a consistent move right across the curve as the market pukes up fixed income.
In turn, rising yields are hitting stocks with the S&P 500 now down 32 points, or 0.7%. In FX, that means more US dollar buying as we hit the highs of the day right across the board.
US 5s daily
At this point, you can only hope that the turn of the calendar changes the dynamic in the bond market.