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Treasury market surges, stocks trend lower amid debt ceiling talks

Yahoo Finance Live's Julie Hyman checks out market action in the bond and treasury markets amid debt ceiling talks and semiconductor stocks.

Video transcript

JULIE HYMAN: And as we watch markets turn a little bit lower here, my attention is turning to the bond markets. And specifically, I'm looking at the 13-week T-bill here, because the shorter end of the curve is the one that has been reacting the most dramatically to these debt ceiling negotiations. The thinking being, well, if the government is not going to be paying its debts, then the yield is rising because of the perceived risk in some of those shorter term instruments.

So right here, I'm looking at the 13-week T-bill over the past month or so. You see the climb that we have seen in those yields. What's interesting, though, is it is now happening on the longer end of the curve, too. More recently, we have seen this turn up. So the 10-year now at 3.75%, so that's been a big move over the past week or so. And even the 30 year, as well, has been seeing this climb, so that is a little bit new here.

Some of the other things I'm watching in today's session. I'm watching what's going on with the semiconductors. Now, we have a mixed picture, obviously, that you're seeing here. We've got a couple of calls on semis that we're going to talk about later. We've got nVidia, for example, reporting after the close tomorrow. The focus today, though, is on Broadcom.

Now, Broadcom, Apple announcing it is signing a new multibillion dollar five-year-- I believe five-year-- multi-year deal for it to develop some new kinds of 5G chips. The shares earlier were up more, and now they're only up about 8/10 of 1%. So a little bit of that initial advance melting away here, which is interesting.

And then I want to look at the NASDAQ, as well, to see what kind of action the NASDAQ 100 is seeing more broadly here. There, too, you see a bit of a mixed picture, Apple itself down about 7/10 of 1%. So let's look at the equal weight just to show you, about even here between red and green on the screen today, Brad.