Interest rates on the 30-year bond fell 75% from November of 2018 until March of 2020 (1). They have rallied 115% in the past 11-months, after hitting lows in March 2020 at (2).
As yields have risen 115% off the 2020 lows, the S&P is up nearly 65% at the same time. Historic rallies by both assets.
The rally in the 30-year yield has it currently testing its 50% retracement level at (3), which comes into play at 2.14%.
So far the rally in yields looks to be a good sign for stocks. If yields breakout at (3) will that send a continued bullish message to stocks?
How much of a rally in yields will turn into “too much” for stocks?
What yields do at (3) should send a very important message to stocks at bonds!!!