⁍ U.S. Treasury yields were roughly unchanged across maturities on Wednesday afternoon.
⁍ Expectations of heavy issuance of new supply offset safe-haven demand.
⁍ Wall Street’s main indexes briefly lost more than 3% as new cases and hospitalizations set records.
– The stock market plunged on Wednesday, with the Dow falling more than 300 points in the first minutes of trading, as fears of a Donald Trump presidency spooked investors. The S&P 500 and Nasdaq dropped more than 2% each in the first minutes of trading, reports the Wall Street Journal, which notes that all three major US stock indexes are on track for their worst day of the year. The Dow is down 322 points, or 1.6%, while the Nasdaq and S&P are off 2.4% and 1.9%, respectively. Safe-haven assets like Treasuries were little affected by the market turmoil. “The move is anemic. Yields are effectively unchanged,” Andrew Brenner, head of international fixed income at NatAlliance Securities, tells Reuters. “It is because of supply. There is going to be a lot of supply whether Trump wins or Biden wins. There is going to be stimulus.”
Source: https://www.reuters.com/article/usa-bonds/treasuries-yields-flat-in-spite-of-major-stock-sell-off-idUSL1N2HJ1DM