The CBOE Volatility Index fell 3. 7 per cent to 12. 42, the lowest level since July 24. "There hasn't been a lot of hedging activity," Steven Rosen, head of single stock and ETF volatility trading at Société Générale, said. "It tells me that people don't really have much fear that this market is going lower.
The 30-year Treasury bond offers the highest yield in the US government debt market, luring buyers in a low yield world. "It is an impressive auction, clearly showing investors' demand for safety," Larry Milstein, head of government and agency trading at RW Pressprich & Co in New York, said. "Despite low yields in the US, they are significantly higher than in Europe.
In corporate news, Wal-Mart cut its full-year earnings guidance and reported its seventh straight decline in quarterly US store traffic. Revenue rose 2. 8 per cent to $120. 1 billion, topping analyst estimates. Shares inched up 0. 49 per cent.
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