You may have heard: bond yields are surging. It’s sowing extreme angst in U.S. equities, which last week fell the most in two years.
And though the tumble in the S&P 500 may be nothing but a breather, concern is mounting that the Treasury market’s travails are becoming an inescapable portent for stocks. Selling resumed Sunday night as index futures opened lower, a week after yields on 10-year Treasuries climbed to a four-year high of 2.84 percent. Here are some thoughts on why that can be bad for equities.