U.S. Treasury Auction Sparks Market Decline Amid Foreign Investor Concerns

According to BlockBeats, the recent auction of 20-year U.S. Treasury bonds revealed weak demand, leading to a significant downturn in U.S. stocks, bonds, and the dollar. Deutsche Bank analyst George Saravelos interpreted the market's reaction as a clear indication of foreign buyers collectively avoiding U.S. Treasury assets. He noted that foreign investors are no longer willing to finance the U.S. government at current prices. The rising cost of financing is putting pressure on the stock market. Unless there are significant adjustments to the fiscal reconciliation bill proposed by the Republican Party, the value of U.S. Treasuries will need to decrease substantially to attract foreign investors back. As a result of these developments, the S&P 500 index saw its intraday losses widen to 1.5%, the yield on the 10-year U.S. Treasury rose to 4.607%, marking its highest level since February 13, and the dollar index fell by 0.5%.