Global Markets Lower on Concerns Surrounding U.S. Debt

By Dow Jones Newswires StaffEuropean markets followed Asia lower Thursday, burdened by concerns about the rising cost of U.S. debt following a weak U.S. bond auction that sent U.S. Treasury yields higher.Stocks in Asia and Europe fell, while U.S. stock futures were trading either side of flat after Wall Street declined on concerns over the U.S. fiscal plan. The dollar remained weak, even as bitcoin hit a fresh record high in Asia.The House of Representatives will attempt to pass President Trump's tax and spending bill Thursday. The plan is expected to add trillions of dollars in debt over the next decade.U.S. Treasury yields edged higher after jumping significantly Wednesday. The 30-year Treasury yield was up 1 basis point at 5.088%, the highest level since October 2023, according to LSEG data. The U.S. Treasury's 20-year bond auction was "poor," and the market reacted very negatively, Deutsche Bank Research's George Saravelos said in a note. The 10-year yield was up 0.5 basis point at 4.586%, while the 30-year yield rose 1 basis point at 5.088%.The dollar was steady albeit at weak levels following recent falls. The DXY dollar index against a basket of major currencies was steady at 99.583, having reached a two-week low of 99.3360 on Wednesday.Bitcoin hit a fresh high overnight in Asia on hopes the U.S. will pass new digital asset regulations, and as investors seek out dollar alternatives. Bitcoin was last up 2.5% at $110,960 after hitting a high of $111,862 earlier, according to LSEG.In equities, U.S. futures for the S&P 500 were up 0.1%, futures for the Dow Jones Industrial Average were flat and for the Nasdaq were up 0.1% following falls across sectors Wednesday. Tracking those, stocks in Asia were down as Japan's Nikkei 225 index dropped 0.8%, Hong Kong's Hang Seng declined 1.4% and China's Shanghai Composite dropped 0.2%. South Korea's benchmark Kospi index closed 1.2% lower.In Europe, the Stoxx Europe 600 dropped 0.6% in morning trading. France's CAC 40 declined 0.5% and Germany's DAX dropped 0.6%. The U.K.'s FTSE 100 lost 0.5%.Gold prices rose, with geopolitical tensions and U.S. debt worries supporting safe-haven demand. Futures gained 0.5% to $3,329.50 a troy ounce.Oil prices extended losses after a surprise build in U.S. crude stockpiles fueled demand concerns. In early European trade, Brent crude and WTI both fell 1.6% to $63.89 and $60.59 a barrel, respectively. Despite price weakness, OPEC+ members are discussing the option of making another supersized production hike in July, Bloomberg reported, citing unnamed sources.Write to Barcelona Editors at [email protected]