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Bond market sends troubling signal on inflation that should concern investors

From morningstar.com

The U.S. bond market sold off on Tuesday in a manner that tends to spell fresh trouble for many stock investors. The selloff in Treasurys sent the yield on the 30-year bond to almost 5.02% and its highest closing level since May 23. Back in May, the 30-year yield's rise above 5% was accompanied by worries about the U.S.'s fiscal outlook. By contrast, Tuesday's moves were largely about the outlook for inflation after June data showed consumer prices rose by the most on a monthly basis since the beginning of the year. A 30-year Treasury yield that rises above 5% tends to be negative for stocks because of the way it ... (full story)

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  • Category: Fundamental Analysis