On the energy front, the EIA weekly inventory report showed a surprise build in crude oil stocks of +1.328M barrels, compared to expectations for a -1.277M drawdown. This mirrored the private API data released late yesterday, which showed an even larger build of +2.499M. Gasoline and distillate inventories also posted modest builds (+0.816M and +0.579M, respectively), defying expectations for drawdowns and surprising markets, especially after the API data had hinted at tighter supply.
Meanwhile, the 30-year yield jumped 11.1 basis points to 5.079%, reaching its highest level since November 2024, after touching an intraday high of 5.098%.
A weak 20-year bond auction, which tailed by 1.2 basis points and showed below-average demand—particularly from domestic buyers.
Equity markets were volatile. The S&P 500 and NASDAQ initially clawed back early losses to trade briefly in positive territory, but reversed sharply lower into the close alongside the spike in yields.
Dow Jones: −816.80 points (−1.91%) to 41,860.44 (intraday high: −237.97)
NASDAQ: −270.07 points (−1.41%) to 18,872.64 (session high: +98.70)
Despite some intraday recovery, the USD finished lower versus all major currencies:
USDJPY: −0.55%
USDCHF: −0.36%
AUDUSD: +0.19%
The dollar did close off its lows, but the tone remained broadly negative as falling auction demand and fiscal fears weighed on sentiment.
This article was written by Greg Michalowski at www.forexlive.com. Read More Details
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