The US S&P 500 fell more than 3% in late-morning trading, alongside a similar decline in the Dow Jones Industrial Average. US Treasuries whipped around but by late morning the Fed’s promised buying spree appeared to be having an effect in pushing borrowing costs down.
The yield on the benchmark 10-year note, which moves inversely to price, was roughly 13 basis points lower at 0.71%. The central bank’s historic decision to buy corporate debt also helped to buoy the price of one investment grade bond exchange traded fund, LQD.
European equities bounced from lows on the Fed’s new intervention, but not enough to crawl out of the red. The Stoxx 600 was roughly 4% lower as was the UK’s FTSE 100.
