Surging Treasury Yields Weigh on Stocks, No End in Sight for Bond Selloff

Treasury yields have surged, weighing on stocks and crushing investor sentiment. There's no clear catalyst to stop the bond market selloff.

The best scenario for bonds rallying would be a sharp drop in stocks, as bonds tend to benefit when risk assets fall.

Lower stock valuations and a softening economy could also bring yields down. But data has remained strong and mortgage rates are already high.

An economic downturn may lower yields but wouldn't boost stocks. The "pain trade" wouldn't guarantee yields fall soon.

Rising yields could damage the economy but there's no guarantee they reverse course quickly even with slower growth.