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As flight-to-safety continues to dominate the financial markets on Thursday, the 10-year US Treasury bond yield extended its slide and touched a fresh all-time low of 0.902% during the American session with a daily loss of more than 14%. Moreover, the 2-year reference is at its lowest level since July 2016 at 0.572%, down 18.55% on the day.

Reflecting the dismal market mood, Wall Street’s main indexes are suffering heavy losses and the CBOE Volatility Index is adding nearly 20%. 

US stocks retrace Wednesday’s rally

Pressured by a 4.7% drop in rate-sensitive Financials Index, the Dow Jones Industrial Average is erasing 3.4% on the day. Moreover, the S&P 500 and the Nasdaq Composite are down 3.2%, and 2.8%, respectively. Among the 11 major S&P 500 sectors, Energy and Materials are also losing more than 4% on Thursday.