Mutual Swoons Bind Stocks and Bonds in Replay of Past Hawk Raids
- Treasury and U.S. stock ETFs lose more than 1.5% each
- Simultaneous drops of this size occurred during taper tantrum
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It was deja vu for stock and bond traders Friday as they relived past bouts of central bank-fomented neurosis.
Both markets plunged in unison, a rare but not unheard of spectacle that is almost always triggered by Federal Reserve hawkishness. The S&P 500 Index tumbled 2.5 percent in its biggest drop since the Brexit vote while Treasuries slumped, sending the yield on the 10-year note to the highest since June.