Markets fall with Treasury yields

Markets were mostly lower on Tuesday.

The S&P 500 fell 0.8 percent, the STOXX Europe 600 fell 0.7 percent and the Shanghai Composite fell 0.1 percent.

US 10-year Treasury yields fell about 5 basis points, which Art Cashin, director of NYSE floor operations at UBS, said may have contributed to the fall in stocks.

“For the past two weeks whenever yields move down, stocks move down,” said Cashin.

Bianco Research president James Bianco told CNBC last Friday that the market needs to see the Federal Reserve respond with aggressive rate cuts.

“We’re the only place on the planet now you can get more than a 2% yield among developed countries,” Bianco said. “Powell should probably open the door for the possibility of a 50 basis point cut at the September meeting.”

Kyle Bass, founder and chief investment officer of Hayman Capital Management, does think that the Federal Reserve will keep cutting rates and eventually bring US interest rates all the way down to zero.