The stock market has been the acute point of stress for investors the past week. But the bond market hasn’t given them much of a break either. On Tuesday, as the S&P 500 tumbled for a fourth straight day, prices of long-term U.S. Treasury debt fell, too. That drove their yields, which move in an inverse relationship to prices, higher. It was especially confounding because long-term Treasury prices in preceding days hadn’t gained as much as they normally would in the face of a steep-stock market selloff. So much for government debt being a haven at a time of upheaval. The big question is why Treasury yields have behaved this way.
Source: WSJ.com: Markets
