Wall Street emerged on Wednesday after a 10 -year -old treasure auction burst helped to calm the fears of a financial crisis, delivering a strong reprimand to the students of the doomsayers who predicted that foreign investors would flee from US assets in protest of the commercial agenda of President Donald Trump, and President Trump announced a pause in the passengers of the passengers of the passengers of the passengers of the passengers of the passengers of rates in some countries.
The Dow increased 5.9 percent, the S&P 500 increased by 7.3 percent, and the Nasdaq shot 8.9 percent, limiting a dramatic rebound of one week of pronounced losses caused by the yields of the increased global bonds and tariffs.
The spark? A remarkable auction of $ 39 billion or 10 -year treasure notes. The bonds were sold with a yield of 4,435 percent, lower than expected, with a meaning meaning through a sign that investors were eager to buy even below the market rates in force. Foreign buyers, classified as “indirect bidders”, obtained 88 percent of their assignment, far exceeding historical norms.
The analysts characterized the auction as “very strong.”
At the same time, Donald Trump said on social networks that he would stop the tariff walks for 90 days in countries that were not taking reprisals, the United States rates anticipated last week. The 10 percent reference rate will remain.
For days, Wall Street had been grabbed by the panic that Trump’s tariff offensive would cause a defeat of “selling America”, with foreign creditors, especially China and Japan, Dumping Treasurys. The yields in the 10 years increased more than 60 basic points in four days, the most important movement since the financial crisis of 2008. Talking about a crunch of liquuidity and emergency intervention of the Fed dominated by the holders.
But Treasury secretary, Scott Besent, urged calm.
“There are some very large players who have experienced losses,” Besent said at Fox Business at dawn on Wednesday. “They are having to disapprove … I think there is nothing systemic in this.”
The auction claimed that opinion. The lawsuit was broad and deep, under the cutting claims that foreign buyers were organizing a boycott. Treasury prices increased sharply after the results, and yields retreated from crisis levels. The actions followed their example, emerging in all areas as investors reevaluated the perspective of risk.
The change occurred only one day after a disappointing auction of 3 years had amplified the fears of collapsing the demand. Analysts warned about a possible “demand strike”, driven by Trump tariffs, high inflation and growing deficits. Some speculated that Fed could have to intervene to stabilize markets.
Instead, investors appeared in force, the confidence in the debt of the United States and send a message that the capital markets of the United States remain the most reliable in the world, even in the midst of a global commercial realignment.
The bond market now directs your attention to the 30 -year -old auction on Thursday. But after today, the mood of Wall Street has clearly changed, from panic to trust.
