Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee hearing on “The Quarterly CARES Act Report to Congress” on Capitol Hill in Washington, December 1, 2020.
Susan Walsh | Pool | Reuters
Stock investors are trying desperately to interpret what a rise in bond yields means for the stock market.
Since February 10th, 10-year Treasury yields — which are not inflation adjusted — have moved from 1.13% to as high as 1.61%, a rise of 48 basis points, the highest level in a year. (One basis point equals 0.01%)
Fear of inflation is causing investors to speculate the Federal Reserve may have to shift policy sooner than expected, by either reducing bond purchases or…