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Dramatic Bond Sell Off

Please click here for a chart of Nasdaq 100 ETF (QQQ).

Note the following:

  • There is a dramatic sell off in bonds.
    • The yield on 10-year Treasuries is approaching 2.5%.
    • 30 year mortgages are approaching 5% when points are taken into account.
  • The probability is rising that the Fed may raise interest rates by 50 basis points 3 times in a row.
  • Normally tech stocks would have experienced a dramatic sell off due to rising interest rates.
  • The chart shows that even though there is selling, tech stocks have held up.