stocks should rally into year-end, the continued sell-off in bonds is threatening to destabilize what's so far been a strong year for equity markets.
But it's not so much the absolute level that shakes markets as it is the speed of the change in prices and rates. Except a lack of worry the US government will pay you back isn't the same as expecting the value of these securities to hold steady over time. A lesson investors are relearning during the Federal Reserve's rate-hiking cycle.
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