The Impact of Surging Bond Yields: A Visual Analysis

The rapid rise in U.S. bond yields is causing turmoil in financial markets, with interest-rate sensitive sectors of the stock market being hit the hardest. The surge in Treasury yields is raising concerns about the sustainability of the current bull run for equities. Home builders, utilities, small-cap stocks, gold, and U.S. multinationals are all feeling the impact of rising yields, with mortgage rates exceeding 8% for some buyers and utility shares appearing less attractive. Additionally, the rally in the U.S. dollar is posing a potential challenge for companies reliant on exports and overseas sales.