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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.
The widening yields led to concerns that the cost of servicing government debt could hamper a recovery.
This came as the latest “Beige Book” 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.
Official data also showed the US trade deficit widened for a second month to $29.2bn (£17.8bn) in April, as exports slumped further and consumers spent more on foreign petrol.