Bonds Join Stocks Falling in Markets Overwhelmed by Debate
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Stocks and Treasuries are moving in tandem twice as often as they normally do, a sign investors are growing convinced the U.S. will lose its AAA credit rating and that an impasse among lawmakers may spur losses in both markets.
The Standard & Poor’s 500 Index has risen or fallen together with 10-year Treasury notes 80 percent of the time in the last 10 days, compared with the average since 2000 of 41 percent, according to data compiled by Bloomberg. The benchmark index for American shares lost 2 percent yesterday, the most since June 1, and the 10-year bond fell, driving its yield up three basis points to 2.98 percent.