Bond yields are trying to crash stocks

Thursday 5 October 2023

Apollo offers some reasons for the great bond smash.

There is something weird going on in US government bond markets, and the relentless increase in long-term interest rates is quite ominous for the economy, and perhaps also for financial stability.

We are late in the cycle, and Fed hikes are biting harder and harder on consumers and firms. Stock markets see the negative effects of tighter monetary policy, and equities are trading lower. But long-term interest rates should be going down, not up.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.