1 min read
The bond market is sending louder warner signs to the stock market. Now, stock fans need to listen up.
“I would say [it’s] not a crisis but an eye-opener, and it’s something I think you’ve got to think about,” BlackRock chief investment officer of global fixed income Rick Rieder said on Yahoo Finance’s Sozzi Unleashed.
Rieder was among the finalists for the Fed chair role that ended up going to Kevin Warsh.
The 10-year Treasury yield (^TNX) climbed as high as 5.12% on Wednesday, its highest level since 2007. The 30-year Treasury yield (^TYX) touched 5.4%, its highest level since 2004, while the 5-year yield (^FVX) also jumped to a 2007 high.
Rates have stayed at these elevated levels today.
Read more: How soaring Treasury yields could hit your finances
The move higher in yields comes as oil prices advanced and business activity data came in hotter than expected. Taken together, it fueled concerns about further Fed rate hikes.
Fed members aren’t helping the matter.
New York Federal Reserve president John Williams said Thursday it was reasonable to think the Fed may need to raise interest rates again before year-end to corral inflation.
Williams echoed Federal Reserve governor Michael Barr’s comments on Wednesday that additional interest rate hikes would be needed.
Brian Sozzi is Yahoo Finance’s Executive Editor, host of the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
Click here for in-depth analysis of the latest stock market news and events moving stock prices
Read the latest financial and business news from Yahoo Finance
