The 40-basis point move by the 30-year yield and the 43-basis point move by the 10-year yield since the beginning of this year have some consequences for the real economy -- and it added to the nervousness in the stock market when investors finally took note of it.


These higher borrowing costs also mean that investors are now seeing more attractive yields in bonds, and there is less pressure to chase risk. The stock market last week reacted fairly suddenly to what has been in the works for months. As they say, Treasury yields don't matter to stocks -- until they do.

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