BILS - Yields Spiking Equity Markets Shaky Recovery Firm - Market Strategy Weekly - February 26 2021

• In the fixed income world, the yield on the 10-year Treasury bond briefly broke through 1.60% Thursday. This is still low by historical standards but represents a sharp and rapid.
• We look at weakness in the bond market (remember, bond prices fall as yields rise) and the resulting equity market volatility as both a test and a signal.
• We suspect a sharp rise in yields heightens concerns of inflation as well as concerns of a potential curbing of recent housing market strength.

For further details see: