The stock market embraced higher yields. Now it fears them.
5 days, 22 hours ago

The stock market embraced higher yields. Now it fears them.

Live Mint  

The 10-year bond yield came within a whisker of its high from last April on Wednesday morning, and stocks, especially smaller stocks, didn’t like it one bit. They have shifted from thinking that higher Treasury yields are just an unwelcome side effect of the stronger growth promised by president-elect Donald Trump, to worrying that higher borrowing costs might end up being very important. Stocks and bond yields both soared, as investors anticipated a ton of good stuff from a new Trump administration: deregulation and lower taxes to boost growth and tariffs to extract concessions from other countries. Higher bond yields didn’t matter with so much good stuff to dream about. Higher yields caused by stronger growth are usually fine for stocks, because stronger growth means higher profit.

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History of this topic

A bond selloff is rocking the world. You might want to take the other side.
Trending News
2 days, 21 hours ago

A bond selloff is rocking the world. You might want to take the other side.

Live Mint  

Wall Street is really worried about bonds. On Friday, a jobs report that blew past expectations pushed yields on 10-year Treasurys to 4.772%, the highest close since Nov. 1, 2023, and those on 30-year paper to 4.962%. Rather, it might be the result of investors applying a higher discount or “term premium" to hold long-term bonds, estimates by the Federal …

Last Time Bond Yields Surged Like This, Stock Markets Sank
Trending News
1 week ago

Last Time Bond Yields Surged Like This, Stock Markets Sank

Live Mint  

There’s room for stock markets to fall further as bond yields approach levels that have been painful for equities in recent years. The US 10-year Treasury yield climbed to levels just shy of 4.7%, the highest since April after an almost uninterrupted surge of more than one percentage point since mid-September. “Equity/bond yield correlations have turned negative again,” Goldman Sachs …

Stock market today: Wall Street rises following last week’s slide
1 month, 4 weeks ago

Stock market today: Wall Street rises following last week’s slide

Associated Press  

NEW YORK — Most U.S. stocks ticked higher Monday to recover some of their sharp slide from last week. Investors had sent the S&P 500 nearly 4% higher in the days immediately following Trump’s presidential win. Bank stocks, smaller companies and other areas of the market seen as the biggest winners from Trump’s preference for lower tax rates, higher tariffs …

Why are bond yields surging around the global markets? - Explained
1 year, 3 months ago

Why are bond yields surging around the global markets? - Explained

Live Mint  

Over the past six months, the international bonds yield has been on a haywire. Sustained expectations of inflation are likely to keep yields above this conventional range, potentially detrimental to economic growth and the stock market, as both household and corporate spending face constraints. The prevailing high bond yields are primarily driven by the market demands for premiums when investing …

Bright start for bonds to new year eases market pressures
1 year, 11 months ago

Bright start for bonds to new year eases market pressures

Live Mint  

Another strong week for the U.S. bond market is giving investors increasing hope that they can turn the page on a brutal 2022. Last week’s consumer-price index report was then also encouraging, hinting at a continued slowdown in the type of services inflation that Fed officials have spotlighted as particularly important. Last year, the S&P 500 fell over 19%, while …

Surge in bond yields could drive growth off track: RBI
3 years, 9 months ago

Surge in bond yields could drive growth off track: RBI

Live Mint  

The Reserve Bank of India on Friday warned that rising bond yields could undermine the fragile global economic recovery, rendering most economies unable to tolerate high interest rates. In its latest currency and finance bulletin, RBI also pointed to the stubbornly high yields in the Indian bond market, cautioning that rising yields could prompt central banks to boost bond-buying. The …

Powell: Higher inflation temporary, no rate hikes in sight
3 years, 10 months ago

Powell: Higher inflation temporary, no rate hikes in sight

Associated Press  

WASHINGTON — Federal Reserve Chair Jerome Powell suggested Thursday that inflation will pick up in the coming months but that it would likely prove temporary and not enough for the Fed to alter its record-low interest rate policies. Stock investors, too, dumped shares in the midst of Powell’s remarks, in which he suggested that the Fed would need to see …

Plunging yields force investors and Fed to rethink strategy
4 years, 10 months ago

Plunging yields force investors and Fed to rethink strategy

Associated Press  

WASHINGTON — The response in stock markets to the growing risk from the coronavirus has been swift and fierce. The plunging yields across bond markets could hamstring the Federal Reserve’s ability to respond to a future recession. The shrunken bond yields will also make it harder for those who invest in them to earn much income: The return on the …

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