There's a not-so-quiet rebellion going on in the Bond market, and it threatens to take 10-year yields above 3 percent much faster than expected just a few weeks ago.
There are some powerful forces at work, with global growth strong, central banks moving to tighten policy and the government's deficit spending creating more and more Treasury supply.
But it also had a negative impact on the bond market and resulted in forecasts of more Treasury supply and higher $1 trillion deficits.
"It signals that fiscal austerity out of D.C. is a thing of the past, and Republicans aren't nearly as concerned with the overall trajectory of the deficit as they have been and the president is worried about it," he said.
The 10-year is the benchmark best known to investors, and its yield influences a whole range of loans, including home mortgages.
If you sell stocks, and they crash, yields come back down," said Art Hogan, chief market strategist at B. Riley FBR.
Rising yields challenge equity prices and make investors reassess valuations.
- Bond Traders Have Gone From Hoping for Volatility to Worrying About ItBloomberg
- Trump's Soaring Budget Deficit Risks Intensifying Market FrenzyBloomberg
- Instant View: US Stocks Stumble Again, as Bonds Yields RiseU.S. News & World Report
- Dow sheds more than 600 points on specter of higher interest ratesTampabay.com
- Stocks plunge on rate hike jittersCrain's Chicago Business
- GLOBAL MARKETS-Selloff continues in stocks; investors fret over high bond yieldsReuters
- Dow Drops Nearly 700 Points As Bond Fears Haunt StocksCBS San Francisco Bay Area
- GLOBAL MARKETS-US stocks fall 1 pct; rising bond yields keep investors nervousReuters
- US STOCKS-Wall St sinks again as bond yields riseReuters