Rising Yields Rattle Markets as Tech Stocks Disconnect from Rates

Treasury yields continued marching higher, with the 10-year reaching 4.9% for the first time since 2007. This is destabilizing equity markets.

The speed of the change in yields and rates is rattling investors, as bonds are supposed to be the stable part of a portfolio.

The stock rally remains concentrated in a few big tech names like Apple and Microsoft, even as their valuations disconnect from rising rates.

Something has to reconcile the divergence between rising yields and lofty tech stock prices, potentially through a market correction.

Persistently rising yields raise the risk of a Fed policy error that could "break" markets, the impacts of which would only be clear in hindsight.