Rising bond yields blunted U.S. stocks’ market momentum this week despite signs of an improving American economy. When bond yields were at their lows, they offered investors virtually no returns or even negative returns after inflation. Now that bond yields are rising, those richly valued stocks look less attractive. He said the pickup in bond yields would have a knock-on effect on areas such as corporate lending and mortgage rates. Peter Boockvar, chief investment officer at Bleakley Advisory Group, said the rise in bond yields has left the Fed with only a few options.

Source: Mint February 27, 2021 05:26 UTC