What the Bond Market is Telling Me
Hey, Ross here! The relationship between the 10-year Treasury yield and the stock market has been intriguing during this bull market. Typically, higher yields mean lower stock prices—and lately, that’s held true. But yesterday brought a twist: the largest drop in 10-year yields since December 2023. This could signal a turning point, especially with short positions in Treasury bonds at record highs. If yields keep falling, those shorts could fuel an even steeper decline—great news for stocks. I unpack the implications in today’s Insight.