Stocks: Reading the Yield Signs

S&P: A counter-trend move lower in bond yields could fuel another advance for equities

The stock market rebounded nicely last week after testing the recent lows on Tuesday, June 12. The turnaround in stocks corresponded directly with a reversal in bond yields, in our view, after Treasury yields moved to their highest level in five years. We think that if bond yields behave in the near-to intermediate- term, the stock market could see another mini, upside blowoff.

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