Stocks fell slightly and Treasury yields rallied in overnight trading as investors continue to bet that inflation will lead to a surge in interest rates.
The Chicago Fed National Activity Index (CNFAI) was unchanged for July at -0.19 after being revised lower to -0.19 for the prior month indicating the national economy is expanding at a below-average rate.
Today’s $45 billion 2-year Treasury Note auction was met with decent demand as foreign bidders took 62.0% of the auction and domestic bidders took 20.0% of the auction, leaving securities dealers with 17.9% of the auction.
Stocks were flat on the day except for tech stocks which closed lower. Treasury yields reversed some of their overnight gains but still closed higher on the day.