Ten-year Treasury yields jumped to 5.33% on Thursday, their highest since 2007, and the move pushed S&P 500 futures back below flat after an earlier rally. European indices took a harder hit, with Germany's DAX and France's CAC 40 both sliding.
Ten-year Treasury yields climbed to 5.33%, their highest level since 2007, after easing slightly to 5.27% earlier in the session. The renewed selloff in bonds is again weighing on stocks.
S&P 500 futures are down 0.1%, having been up as much as 0.5% earlier in the day. Nasdaq futures still hold a 0.4% gain, but that is well off the earlier 1.1% advance.
In Europe, Germany's DAX is down 1.3% and France's CAC 40 is down 1.6%. Equities had initially been able to look past the rise in yields, helped in part by continued optimism around the AI and tech story after Micron's earnings beat the previous day.
However, there comes a point where the bond market becomes too difficult to ignore, and that point appears to have arrived again. The problem for broader markets is not just the headline yield level: Treasury yields have been pushing higher at a relentless pace as markets grapple with persistent inflation risks, elevated energy prices, and the possibility that stronger growth keeps interest rates higher for longer.
That leaves equities facing the same question they faced for most of September: how much further can yields rise before something gives. For now, tech shares are still showing some resilience, but for everything else, the bond market remains firmly in the driver's seat.
Source: Investinglive
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