Yield Drama Drowns Out Trump-Biden Show in Rotating Stock Market
- Banks rally as rate-sensitive stocks see their fate reversing
- Reflation trade revives as bulls pin hope on fiscal stimulus
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A presidential election that some people consider the most important ever has lost its ability to sway equity investors in any obvious way. Instead, they’re transfixed by a different drama: the runup in Treasury rates.
In a week where benchmark indexes all but sat still, evidence of bond-market influence stood out among rate-sensitive stocks after 10-year yields spiked. Banks, their shares stuck for months, jumped, leaving them poised for the best month in four years. Homebuilders, which have soared amid low mortgage costs, reversed course and tumbled.