Fiscal fears push bond yields higher as stocks fall
FortuneThursday, May 22, 2025 at 9:30:01 AM
Investors are getting jittery about government finances, and it's showing in the markets. As worries grow, bond yields (which move inversely to prices) are climbing, while stocks are taking a hit.
What This Means: When bond yields rise sharply, it often signals that investors are demanding higher returns for the risk they perceive—whether that’s inflation, debt concerns, or economic uncertainty. This could mean tougher borrowing conditions for governments and businesses, which might ripple through the economy. If stocks keep sliding, everyday investors could feel the pinch in their portfolios too.
— Curated via WP Now’s AI editorial system
