9 November 2023
US Treasury bond auctions are causing significant volatility in stock markets, with the S&P 500 showing about 1% swings on auction days. This effect is now greater than the market impact of employment data. Recent auctions, including a key 30-year bond sale, have shown weaker demand, raising concerns over high yields and their negative effect on stocks. Equity traders are alert to these auctions as critical indicators of market direction amidst uncertainty over Federal Reserve interest rate policies.