It began in mid-February this year as markets woke with a start to an imminent burst of US inflation. That awakening triggered a back-up in bond yields and the rest follows automatically. Equities were forced to reprice on factors that weighed against growth stocks with long-duration returns in favour of more reliable short-term duration value-stock returns.
We saw a reprieve in this trade in April as the bond back-up eased:
But last night Granny Yellen let the cat out of the bag:
Advertisement