US equity and debt exchanges have slumped following the announcement of weak demand for 20-year Treasury auctions. George Saravelos, an analyst at Deutsche Bank, saw the market reaction as a clear sign of "a collective avoidance of US Treasury assets by foreign buyers", noting that foreign investors "are no longer willing to fund the US government at current prices". Rising funding costs are weighing on equities. Barring a major realignment of the Republican fiscal settlement bill, the value of US Treasuries will have to "fall significantly" before foreign investors can be attracted back. As a result, the S & P 500 index widened its intraday decline to 1.5%. The yield on the 10-year Treasury rose to 4.607%, the highest level since February 13, and the dollar index fell 0.5%.