Last night, the three major U.S. Stock Indexes collectively fell, creating the largest single-day decline in a month.
$Nasdaq Composite Index (.IXIC.US)$Closed down 1.41%, $S&P 500 Index (.SPX.US)$Closed down 1.61%, $Dow Jones Industrial Average (.DJI.US)$Closed down 1.91%
In addition, the Bonds and Forex markets also declined simultaneously.
$U.S. 10-Year Treasury Notes Yield (US10Y.BD)$Last night it surged to 4.611%, reaching a new high in nearly three months; $USD (USDindex.FX)$It once again closed lower, falling below 100 points.
Gold Assets rose again due to increased risk aversion, as of now $XAU/USD (XAUUSD.CFD)$it has risen to 3,340 dollars, continuously climbing.
When the market is facing a triple whammy of Stocks, Bonds, and Forex, and only the Gold price soars, it is important to realize that a potential risk is occurring.
Last night, following the lukewarm auction of Japanese government bonds on Tuesday, the auction of 20-year U.S. government bonds also encountered a cold reception, which is a direct trigger for the triple whammy of Stocks, Bonds, and Forex.
This is the first auction of U.S. government bonds after the downgrade in rating, and the cool environment in the market indicates a growing concern about the potential crisis in the bond market.
Let's start with Japanese government bonds.
Japanese Bonds have seen a significant surge in yields due to weak auction results, currently $Japan 10-Year Treasury Notes Yield (JP10Y.BD)$ rising to 1.54%, with the 20-year Japanese Bonds yield increasing to 2.57%.
This means that Japan...