Investor morale in the euro area deteriorated sharply in August, with the Sentix Investor Confidence Index falling to –3.7 from 4.5 in July. Economists surveyed by Sentix had expected the gauge to rise to 6.9, but respondents instead reported growing pessimism about the region’s economic outlook. Analysts said the results suggest the recently announced EU-US trade accord has yet to convince investors that growth prospects will improve. Separately, demand for short-dated U.S. government debt remained solid. The Treasury sold three-month bills at a high yield of 4.165%, down from 4.235% at the prior auction, with a bid-to-cover ratio of 3.17. Six-month bills cleared at 3.98%, also below the previous 4.120%, and drew a bid-to-cover of 3.14. The lower yields indicate investors continue to seek safety in short-term Treasuries even as euro-area sentiment weakens.