Morning Bid: Storm brewing

By Mike Dolan Oct 7 (Reuters) As the US third-quarter earnings season gets set to kick off, Wall Street s S P 500 joined the Nasdaq in setting a new record high on Tuesday its first in about six weeks. Consensus forecasts are for another AI-led blockbuster rise in profits in the July-September ​period, with LSEG data showing expectations of an overall 30% annual expansion. With Treasury yields still hovering ‌close to 24-year highs, bond markets are navigating another heavy week of US debt sales. Tuesday s auction of 3-year notes appeared to go relatively smoothly, unlike last month s jarring 5-year sale, but the rates taken up were still their highest in 20 years. Sales of 10-year and 30-year paper will follow today and tomorrow, respectively. Even though the rise in Federal Reserve interest rate expectations has largely been responsible for ‌the ​surge in Treasury yields over recent months, the risk premium that accounts for ⁠investor uncertainty about holding long-term debt ⁠to