(Bloomberg) — A slide in bonds dragged down stocks as another weak sale of Treasuries raised concern about swelling supply that could keep driving yields up at a time when the Federal Reserve is in no rush to cut rates.
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The US sold $44 billion of seven-year notes at 4.650% — above the pre-auction level of 4.637%. That’s just a day after two other US offerings totaling $139 billion saw tepid demand. Those bond sales are exerting a growing sway over several asset classes, underscoring how the uncertainties over Fed policy continue to grip markets as inflation shows little signs of moderation. And they come at time when stocks aren’t looking necessarily cheap.
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