The relationship between high-flying technology stocks and U.S. Treasury yields has broken down, echoing ‘the extreme anomalies of the dot-com boom when tech valuations became unmoored,” according to Morgan Stanley.
“With tech trading at a 60% premium to an already expensive market, interest rate sensitivity is once again negative, suggesting any backup in yields will be a powerful headwind,” Shalett said in the report. “This index concentration in tech stocks increases market fragility.” The yield on the 10-year Treasury note TMUBMUSD10Y, 1.289% declined about 30 basis points over the second quarter, slipping further in July to trade around 1.3% on Thursday afternoon. That compares with a yield of more than 1.7% at the end of March. Lower Treasury yields have been benefiting longer-duration, rate-sensitive growth stocks, with investors in recent weeks rotating into them from value and cyclical bets.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Analysis: U.S. bond managers say market has overshot, yields too lowInvestors at some of the largest U.S. asset managers are holding fast to the view that bond yields will move higher in the second half of this year, despite the recent slide in Treasury yields, which they see as a temporary move.
Source: Reuters - 🏆 2. / 97 Read more »
Stocks close higher, led by gains for tech; bond yields dropWall Street capped a day of choppy trading Wednesday with more record highs for stocks and another drop in bond yields that sends mixed signals about investors' confidence in the market.
Source: latimes - 🏆 11. / 82 Read more »
Why is the stock market down? Falling bond yields point to ‘growth scare’Investors appear to swap fears of surging U.S. inflation for worries about stalling growth. That makes sense, but don't take it too far, says one Wall Street... A year after the pandemic? How much wealth does the wealthiest need to profit after records profits while all the ma and pa businesses was closed ! How many miracles or pandemic do they need ?
Source: MarketWatch - 🏆 3. / 97 Read more »
Stocks close higher, led by gains for tech; bond yields dropWall Street capped a day of choppy trading Wednesday with more record highs for stocks and another drop in bond yields that sends mixed signals about investors' confidence in the market.
Source: latimes - 🏆 11. / 82 Read more »