American treasures fall for the second consecutive day after a $ 58 billion auction.

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The US government’s loans declined sharply the second day after a short-term treasure auction of $ 58 billion, raised weak demand, and hedge funds continued to promote popular deals quickly.

A benchmark 10-year-old Treasury The yield, which is at the heart of trillions of assets around the world jumped at 0.11 percentage points to 4.3 percent on Tuesday. Over the last two days, it has grown by almost 0.3 percentage point – a large asset leap, which usually moves in small steps.

The sale on Tuesday is the last sign of how some investors throw away even very low risk assets in the cash for cash, as President Donald Trump’s tariffs for major trading partners cause great volatility in the markets. The hedge fund was critical players in reducing as they sought to reduce the risk in their portfolios and reduce broad transactions in the Treasury market.

The sense of gloom deteriorated on Tuesday after the US Treasury Auction for three -year notes attracted the weakest demand since 2023.

The auction attracted higher than expected, and dealers – banks that are obliged to purchase any supplies that are not absorbed by other investors – the 20.7 percent of offers increased, the highest percentage since December 2023, reports Vail Hartman on BMO Capital Markets.

This week, this disappointing deal will make a shadow at the upcoming auction, including $ 109 billion 10-year notes on Wednesday and $ 22 billion on Thursday.

A weak auction will also add care that foreign investors are moving from US state debt at the time of raising the high level of debt in America and the orientation of the Trump administration of government agencies such as independent regulators.

“The poor three-year auction today will certainly feed the rumors of foreign investors who are distracted from the Treasury market,” said Matthew Scott, head of the main fixed income and trade with several assets in Alliancebernstein.

“People now do not want the Treasury, they are in the” get me out “mode,” said one head of the hedge fund who asked him not to call. The man added that the auction was so “badly” that he could weigh in the stock markets. S&P 500 increased by 4.1 percent on Tuesday.

“Post-auction, market (joint-stock) market,” said the man, although others attributed to the sale after lunch with broader tariffs.

Hedge fades also continued to scale risk in their portfolios on Tuesday. Traders and analysts have led several strategies that have been cleared, including “basic trade”, which uses a huge amount of borrowing to take advantage of the differences in the prices for treasures and related future.

The hedge -features this year also made great rates on the likelihood that the Trump administration would have reduced bank regulation. In particular, one rule – the standard leverage factor – makes the bank more expensive, such as Treasury.

Hedge fund expected that the Treasury exceeds the interest rate swaps – derivatives that allow traders to reflect on the debt market – because without these rules the banks will buy more bonds.

But as the tariffs made markets, Bond yields grew with investors, including banks, selling their treasury. As a result of the interest rate, the interest rate exceeded the Treasury, overcoming the popular trade and forcing investors to get out of their positions.

“This is the right, full hedge fund that is declining,” said one trader on the Wall Street.