PRESS ROOM
Stock markets retreat on rising bond yields
Thursday 25th February '21
A sharp increase in longer dated Treasury yields has caused a pullback in equity markets in the second half of February. Rising inflation expectations have caused markets to worry about the prospect of the Federal Reserve (Fed) tightening its policy earlier than expected. Having said that, the Fed has reiterated its position to keep rates low for the foreseeable future. While this may ease nerves among investors, it is possible that fiscal stimulus announcements become the next pivot for equity markets.