1. High-grade companies issued bonds quickly amid rising Treasury yields. 2. Increased borrowing costs pressure stock market, affecting investor sentiment. 3. DJIA is at risk of losing significant gains made since Trump's election.
FAQ
Why Bearish?
Rising yields indicate increased borrowing costs, historically leading to lowered stock prices.
How important is it?
Changes in bond issuance and yields directly impact borrowing costs and market sentiment.
Why Short Term?
Immediate effects on stock prices due to increasing bond issuance and yield impacts.