Bond Yields Are the Stock Market’s Next Problem: Brian Chappatta

First it was China Evergrande Group’s debt crisis, then it was the Federal Reserve’s policy meeting, while in Washington there’s been the continuing kabuki theater around raising the U.S. debt ceiling. Now there’s another pressing item on the list for the stock market to potentially worry about: U.S. Treasury yields.

After initially falling after Wednesday’s Fed decision, yields on benchmark 10- and 30-year Treasuries surged more than 10 basis points on Thursday. The yield on five-year notes, which is especially sensitive to the projected path of central bank policy, nearly reached a 2021 high. It all comes amid a backdrop of more aggressive central bank ...