NEW YORK (AP) — The stock market is again taking its cues from the bond market.
Stocks turned higher Thursday after solid demand at a Treasury auction eased fears that the appetite for U.S. debt would dry up and force the government to pay higher interest rates to entice buyers. That in turn could endanger an economic recovery by driving borrowing rates higher for loans on homes, cars and other major purchases.
Interest rate movements were tugging at the stock market for a second straight day. Investors were relieved that a $26 billion auction of 7-year notes went well Thursday, a day after sending long-term Treasurys plunging on fears that the government could eventually exhaust buyers’ appetite for debt with an unprecedented level of bond sales.
The yield on the 10-year note, a key benchmark for home mortgages and other loans, edged down to 3.73 percent from 3.75 percent the day before. The yield, which moves in the opposite direction from the price of the note, reached its highest level since November on Wednesday.
