Wall St slides over 1% as Treasury yields hover at 16-year peaks
- Wall Street's main indexes sank over 1% on Tuesday as 10-year Treasury yields held their multi-year highs, with investors still wrestling with prospects for a long period of high interest rates and the economic fallout.
Adding to investor anxiety was the potential of a partial U.S. government shutdown by the weekend, which ratings agency Moody's warned would harm the country's credit. Benchmark 10-year Treasury yields have climbed to 16-year highs in the wake of the Federal Reserve's hawkish longer-term rate outlook last week.
Yields may trend higher until Friday's personal consumption expenditures price index gives a fresh view of the inflation picture, said Jack Janasiewicz, portfolio manager at Natixis. "The market is still trying to digest the potential for where that 10-year rate is going to finish," Janasiewicz said."Until we get more clarity on where the 10-year settles, then the equity market is going to be pretty nervous."
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