Stock futures steadied on Thursday after a selloff during the regular trading day.
In a sign the gloomy mood will reverberate across markets, European and U.S. stock futures were a sea of red. MSCI's broadest index of Asia-Pacific shares outside Japan slid more than 3% to a one-month low, its steepest one-day percentage loss since May 2020. For the week the index is down more than 5%, its worst weekly showing since March last year when the coronavirus pandemic had sparked fears of a global recession.
The 10-year yield was up 15.7 basis points at 1.5459%, and touched as high as 1.614%, the highest in a year. A big move came in the early afternoon when an auction for $62 billion of 7-year notes by the U.S. Treasury showed poor demand, with a bid-to-cover ratio of 2.04, the lowest on record according to a note from DRW Trading market strategist Lou Brien, who called the result "terrible." The trading also pushed up a closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations.