Tag Archive: yield

Are Higher Yields Starting to Take a Toll?

The stock market saw major declines on Friday, as the Dow Jones Industrial Average shed over 700 points. Friday’s sell-off, and weekly performance for the indexes, was the worst in some time. Unfortunately, it could be just the opening salvo by stock market bears, and further declines could be ahead. The current risk-off mentality is likely being fueled by several factors, but rising interest rates are, without question, a major catalyst for declining stocks. On Friday, yields on the benchmark ten year note hit 2.85%,... Continue Reading

Things Are About to get More Interesting

As the stock market has continued its seemingly never-ending ascent, something else has been happening in the background, albeit more quietly: Yields have been rising. On Tuesday, famed bond guru Bill Gross of Janus Henderson and formerly of PIMCO suggested that the treasury market has officially entered bear market territory. With a current yield in the neighborhood of 2.55%, the ten year note yield has broken a 25 year trend line. Gross had suggested back in October that a sustained move past 2.40% on the... Continue Reading