Around the World's Markets: New York

NERVOUSNESS ahead of a $15bn auction of five-year Treasury bonds expected late last night weighed heavily. By midday, the Dow Jones Industrial Average was down 102.58, almost 1 per cent, at 10,605.12.

The yield on the benchmark 30-year bond hit a 22-month high of 6.25 per cent before edging lower. "That is probably going to set the tone," said Padhraic Garvey, senior bond strategist at ABN Amro. The stocks that contributed most to the fall were JP Morgan, which lowered the index by 14.56 points, General Motors, 12.35 points, and AT&T, 9.81 points.