When interest rates rise, the prices of bonds and bond-related investments tend to fall. This is because investors can earn a higher return from other investments, so they don’t need to settle for lower yields from bonds. The prices of stocks also tend to fall when interest rates rise. This is because stocks are seen […]
Why Do Rising Bond Yields Hurt Stocks
Investors have been rattled in recent days by rising bond yields. The yield on the 10-year Treasury note climbed above 3 percent on Thursday for the first time in four years, and the Dow Jones Industrial Average plunged more than 1,000 points. What’s behind the sell-off? Many analysts say the rise in bond yields is […]
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How Do Bond Yields Affect Stocks
Bond yields and stock prices are two of the most important measures of the health of an economy. They are also two of the most closely watched indicators by investors. Bond yields are the interest rates that a government or company pays to borrow money. The yield is calculated by dividing the amount of money […]
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