US equity markets – after an impressive surge early in the day – have suddenly hit a speed-bump…
And the selling is very broad-based…
No major news catalyst struck to mark the top but we note that the Treasury yield spike has been very violent…
Which, as Bloomberg’s Cameron Crise notes, means this yield move is entering the “danger zone” for stocks.
The 30bps spike in the last 5 weeks falls into the cohort where average and median equity performance has been negative over the following five weeks.
As Cris concludes, do with that information what you will, but realize that with this kind of price action the bond market is not the equity market’s friend.
