News Summary: Financial markets extend their slide

AP News
Posted: Jun 20, 2013 5:50 PM

NO LET-UP: There was no let-up in the flight from stocks and bonds Thursday. Financial markets continued to slide after the Federal Reserve said Wednesday that it could start phasing out its bond-buying program later this year. The Dow Jones industrial average fell 353 points, its worst day since November 2011.

HIGHER RATES: The yield on the 10-year Treasury note climbed to 2.42 percent, its highest level since August 2011. Rising government bond yields lead to higher mortgage rates. Concern about that prompted a sell-off in housing stocks.

TROUBLE IN CHINA: Worries about China, the world's second-largest economy, also rattled investors. Chinese manufacturing contracted further this month, according to an HSBC survey. There were also reports that the People's Bank of China was forced to pump cash into the financial system to alleviate a cash squeeze.