Market Is Right to Be Spooked by Rising Bond Yields

No one likes losing money, but Tuesday’s stock-price fall worries me more than the headline of a 2% fall in the S&P 500 should. In itself, 2% is no biggie: three days this year had bigger falls, and on average we have had seven worse days a year since 1964.

What bothers me is that the rise in bond yields that triggered the fall was really quite small, and there could easily be a lot more to come. The 10-year Treasury yield rose only 0.05 percentage point, taking it above 1.5%, and the 30-year rose slightly more to just above 2%. If this is the sort of response we should expect, then get out your tin hat. Yields need to rise four times as much just to get back to where they were in March.

Disclaimer that the site operates automatically without human intervention, so all articles, news and comments posted on the site are the responsibility of the owners and the website manages them do not bear any moral or legal responsibility for the content of the site.
"All rights reserved for their owners"

Source:" WSJ "

Get the latest news delivered to your inbox

Follow us on social media networks

PREV Morrisons Sold to Clayton, Dubilier & Rice for $9.4 in Frenzied Bidding War
NEXT Facebook's Trials Aren't Everyone's Tribulations