The recent sell-off in growth and tech stocks has been attributed to rising bond yields. Government bond yields all over the world have risen sharply in the last couple months. As examples, the yield of US 10-year treasury notes increased from 0.9% in January to 1.45% today, the yield of Japanese 10-year bonds increased from 0% to 0.14%, and the yield of United Kingdom 10-year bonds increased from 0.2% to 0.75%. In this article, I'll breakdown the intricate relationship between government bonds and equities to unpack why the stock market experiences increased selling pressure from rising bond yields.
Why Rising Bond Yields Can Be Bad For Stocks
Why Rising Bond Yields Can Be Bad For Stocks
Why Rising Bond Yields Can Be Bad For Stocks
The recent sell-off in growth and tech stocks has been attributed to rising bond yields. Government bond yields all over the world have risen sharply in the last couple months. As examples, the yield of US 10-year treasury notes increased from 0.9% in January to 1.45% today, the yield of Japanese 10-year bonds increased from 0% to 0.14%, and the yield of United Kingdom 10-year bonds increased from 0.2% to 0.75%. In this article, I'll breakdown the intricate relationship between government bonds and equities to unpack why the stock market experiences increased selling pressure from rising bond yields.