Even today also the bonds yield went up by 10 basis points.,In the recent past this has been a common thing.,Treasury yields represent the risk free rate. They are considered risk free from default.
The higher the yield is on treasuries the less investors will potentially put into stocks, because it is less likely they will get a return on stocks above the risk free rate. That pushes stock valuations down. When yields are low investors tend to take more risk on stocks for higher returns and that pushes stock valuations up.
I am bit concern about recent amounts of foreign selling.,Is there a correlation between bonds yield and the foreign selling??
Last edited by dindon1 on Thu Dec 29, 2011 8:40 am; edited 1 time in total