Economics
Bond-Stock Clash Has Just Begun as Inflation Looms
- Tug-of-war plays out as equities crumble amid higher yields
- CPI release is ahead, expected to show slowdown from December
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The tug-of-war between stocks and bonds is at the heart of the shakeout roiling financial markets. This week’s U.S. inflation report could hold the key to the next phase.
Seemingly every time 10-year Treasury yields approached a four-year high last week, equities investors panicked, fearing the specter of higher inflation and a more aggressive pace of Federal Reserve rate hikes.