From Yahoo Finance: 2025-05-24 08:30:00

Rising Treasury yields caused concern for stock-market investors as the 30-year Treasury bond hit 5.15%, nearly reaching its 2023 high. The S&P 500 and Dow Jones both fell over 2.5% for the week, the steepest decline since April. Investors fear rising yields could lead to further stock and asset price drops.

Trump’s tax and spending legislation, named the “big, beautiful bill,” passed by one vote, increased worries of a growing deficit. Moody’s recently stripped the U.S. of its last triple-A credit rating, citing rising deficits and interest payments. Poor bond auctions and rising yields sparked concerns over demand and stock market decline.

10-year Treasury note yields rose above 4.60%, the highest since February, signaling potential strain on the economy. Stock-market valuations tend to shrink when 10-year yields exceed 4.5%, causing unease for investors. The rise in real yields paired with lowered economic growth forecasts highlighted growing fiscal concerns among experts.

Global bond vigilantes sent warnings as long-term Japanese yields surged alongside U.S. yields. Rising long-term yields indicate fiscal concerns and lack of debt-reducing efforts in Washington. The move raised concerns among investors and highlighted the fracturing relationship between stocks and rates globally.

While U.S. and Japanese yields pulled back from recent highs, the spike in long-term yields was not alarming to all investors. Technical analysts noted the attention given to the 30-year bond, highlighting the importance of the 10-year Treasury note for economic activity. The speed of yield increases, rather than just the level, could impact the stock market’s stability going forward.



Read more at Yahoo Finance: Rising bond yields give stock-market investors the yips. Watch these levels.