US stocks tumble. Yields start to weigh on the equities

U.S. equities have reversed sharply into negative territory amid a surge in Treasury yields, following a disappointing 20-year bond auction.

• The Dow Jones Industrial Average is down 684 points (-1.61%).

• The S&P 500 has dropped 63 points (-1.07%).

• The NASDAQ Composite is lower by 139 points (-0.73%).

The selloff in equities coincides with renewed pressure in the bond market. The 10-year yield has jumped 10.0 basis points to 4.582%, while the 30-year bond yield is up 10.5 basis points, now trading at 5.073%.

The weak demand at today’s 20-year auction reinforced concerns about long-term fiscal supply and has triggered a broad repricing in risk assets.

The EURUSD is extending back toward the European session high at 1.1361. The current price is at 1.1357

The USDJPY is moving lower despite the rise in yields. It is trading near new session lows at 143.36. They 61.8% retracement of the move up from the April low to the May high comes in at 143.225.

This article was written by Greg Michalowski at www.forexlive.com.