Last time bond yields surged like this, stock markets sank

Published On Jan 8, 2025, 4:05 AM

The article discusses the impact of rising bond yields on stock markets, particularly focusing on the recent spike in the US 10-year Treasury yield, which has reached close to 4.7%. Historically, such increases in bond yields have led to declines in stock prices, and analysts warn of potential downside for equities if the yields continue to rise without favorable economic indicators. Strategists from Goldman Sachs express concerns about negative growth news affecting equity markets, indicating a heightened risk of corrections in the stock market while many investors remain bullish about US equities in 2025.