Bond Market Volatility Weighs on Stocks, Raising Concerns of Further Declines
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Stocks gave back gains last week as bond market volatility caused credit spreads to widen.
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Treasury auctions resulted in bond market volatility and intraday stock reversals on Tuesday and Thursday.
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As the yield curve steepens, bond market volatility is rising, causing credit spreads to widen and stock prices to decline.
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Higher inflation, ongoing Treasury auctions, and geopolitical tensions may lead to further bond volatility.
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If bond volatility persists, stock prices will likely continue to decline from current levels.