US Inflation Concerns Ease and Treasury Auction Reassures... New York Stock Market Strengthens

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The $38 billion U.S. 10-year Treasury auction, which attracted the attention of global capital market participants, concluded relatively smoothly. As a result, the U.S. bond and stock markets are showing strength.

According to investment media Barron's, the 10-year Treasury auction that ended at 1 p.m. local time on the 10th saw bids amounting to $2.38 per $1, maintaining usual levels.

This stands in stark contrast to the 7-year auction on the 25th of last month, which triggered a sharp rise in Treasury yields due to demand falling significantly short of bids.

The winning yield was 1.523%. Bloomberg reported that the winning yield was set slightly above the market rate that day.

Following the stable results of the 3-year auction the day before, the 10-year auction's steady outcome is expected to reduce the negative impact of Treasury auctions on the market. Analysts also suggest that the 30-year Treasury auction scheduled for the next day is likely to conclude without major surprises.

As of 2 p.m. on the same day after the auction, the 10-year Treasury yield stood at 1.513%, down 0.031 percentage points. Considering that the 10-year Treasury yield had risen to 1.61% intraday this week, this represents a sharp drop of 0.1 percentage points.

Although the February Consumer Price Index (CPI) released that morning showed an upward trend, it was lower than expected, which helped ease investors' concerns.

The core Consumer Price Index (CPI), the most important indicator the Federal Reserve (Fed) considers when deciding interest rates, rose only 0.1% in February, falling short of the market expectation of a 0.2% increase. This dampened fears of a sharp inflation surge.

Besides the bond market, the stock market also felt reassured by the auction results that day.

The Dow Jones Industrial Average rose 1.5%, the S&P 500 increased 0.77%, and the Nasdaq was up 0.03%.

CNBC reported that as concerns about inflation eased and the Treasury auction concluded, the Dow Jones index further extended its gains.

This content was produced with the assistance of AI translation services.