Rising US debt yields sparks market fears

US MARKETS were fearing recent cheer may be premature last night after an auction of benchmark 10-year Treasury notes triggered a bout of selling that sent spreads widening to levels last seen in October last year.<br /><br />The widening yields led to concerns that the cost of servicing government debt could hamper a recovery. <br /><br />This came as the latest &ldquo;Beige Book&rdquo; economic survey said many US regions deteriorated between mid-April and May and it has remained difficult for consumers to get loans despite costly stimulus efforts.<br /><br />Official data also showed the US trade deficit widened for a second month to $29.2bn (&pound;17.8bn) in April, as exports slumped further and consumers spent more on foreign petrol.