BOND SELL OFF AT THE FASTEST RATE BUT STOCK INVESTORS FOCUS ON STOCK MARKET EXUBERANCE
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Fastest Bond Sell Off
Please click here for a chart of yield on U.S. Treasury Securities at 2-Year Constant Maturity.
Note the following:
- The chart shows a rapid rise in the yield on 2-year Treasury securities.
- Yields move inverse to the bond prices. When bonds sell off, yields move higher.
- Bond sell off is taking place at the fastest rate since 1973.
- Normally a rapid rise in yields causes a sell off in stocks. However, the data is from the time when the momo crowd did not have such strong control over the stock market.
March 22, 2022