NEW YORK, Nov 4 (Reuters): Hopes that a rout in Treasuries has run its course are tempting some investors back into the US stock market after a months-long selloff.
The relationship between stocks and bonds has been a tight one in recent months, with equities falling as Treasury yields climbed to 16-year highs. Higher yields offer investment competition to stocks while also raising the cost of capital for companies and households.
Over much of the last week, however, that dynamic has reversed, following news of smaller than expected US government borrowing and signs that the Federal Reserve is nearing the end of its rate hiking cycle.
Stock investors see green light in falling Treasury yields
FE Team | Published: November 04, 2023 22:05:45
Stock investors see green light in falling Treasury yields
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