by Megan Henney at Fox Business
The bond market is on track for its worst year since 1949 and will continue to batter stocks over the coming months, according to an analyst note from Bank of America obtained by FOX Business.
Bonds have tumbled as the Federal Reserve ratchets up interest rates as it tries to crush stubbornly high inflation, with two-year U.S. Treasuries posting their longest losing streak since at least 1976.
On Monday, the 2 Year Treasury yield rose 0.103 percentage point to 4.315%, a new 52-week high and the highest since August 14, 2007. The 10 Year Treasury also reached a 52-week high, up 0.183 percentage point to 3.878%, the highest since April 9, 2010.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UTWO | RBB FUND INC US TREAS 2 YR NT ETF | 49.10 | -0.09 | -0.18% |
| UTEN | RBB FUND INC US TREAS 10 YR NT ETF | 45.56 | -0.76 | -1.64% |
The ongoing crash in the bond market, however, could lead to a credit event that would essentially drag down the U.S. dollar, U.S. technology stocks and long private equity trades in the long-term, according to the Bank of America strategists.
“Bond crash in recent weeks means highs in credit spreads, lows in stocks are not yet in,” the analysts, led by Chief Investment Strategist Michael Hartnett, wrote…