The bond market is sending another warning to stock investors. Long-term Treasury yields have surged, with the 30-year yield recently touching its highest level since 2007. The 10-year Treasury yield is also pushing toward its own multi-year high.
Stocks and bonds have responded with some volatility. Treasury Secretary Scott Bessent announced a government intervention that resulted in it buying back bonds on the long end of the curve. But that proved to have little impact on the direction of rates.
That creates a potential problem for investors. If rising yields continue pressuring both stocks and bonds, is it time to reduce some exposure now?
This post originally appeared at The Motley Fool.