The Worst Bond Selloff Since 2007 Gave A Message About The U.S. Stock Market

Global bond yields jumped to multi-year highs amid concern over U.S. fiscal deterioration, with deficits and debt driving higher rate risk. While equities stayed near record highs, supported by strengthening corporate earnings and profit margins, the divergence suggests caution as the rates backdrop worsens.

Analysis

Global bond yields jumped to multi-year highs amid concern over U.S. fiscal deterioration, with deficits and debt driving higher rate risk. While equities stayed near record highs, supported by strengthening corporate earnings and profit margins, the divergence suggests caution as the rates backdrop worsens.