Bond Market Selloff Fails to Shake US Stock Bull Case — Technical Analysis Reveals Five Resilience Signals — BigGo Finance

- A recent surge in US long-term Treasury yields has triggered a bond market selloff, causing concern among equity investors regarding the stability of the stock market.
- Technical analyst Mark and other experts identify five resilience signals, including a VIX-to-VVIX ratio of 0.17 and the continued strength of financial stocks during yield curve steepening.
- Deutsche Bank strategist Maximilian Uleer warns that Brent crude exceeding $100 per barrel, combined with high long-term rates and falling inflation, would be a more critical danger signal.
- Despite the bond market volatility, technical indicators suggest the US stock bull case remains intact for the time being.
Sources & Citations
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U.S. 30 Year Treasury Yield Hits 19-Year High as Debt Fears Rise - The Coin Republic
• The U.S. 30-Year Treasury yield reached a 19-year high, hitting 5.30% as of August 17. • This surge was driven by mounting concerns over inflation, increased debt issuance, and rising oil prices.
Read original · thecoinrepublic.comBond market takes a breather after surprise move by Treasury Department
• The U.S. Treasury Department unexpectedly doubled its planned purchases of longer-term bonds on Wednesday to stabilize the market. • This intervention follows a surge in bond yields, which recently reached their highest levels in nearly two decades.
Read original · cnn.com
CNNUS Economy Is Close to a Recession, 2 Warning Signs: Economist - Business Insider
• Toumas Malinen, a professor specializing in financial crises, warns that the US economy is currently dangerously close to entering a recession. • In contrast, economists at the Atlanta Fed provide a more optimistic outlook, estimating that GDP will expand by 4% over the third quarter.
Read original · businessinsider.comBreaking The News
• U.S. Treasury yields for 10-year and 30-year notes plunged on Wednesday following the Treasury Department's announcement of expanded liquidity-support buybacks. • The department plans to double the scale of these buybacks to improve market functioning and ensure smoother trading of older securities.
Read original · breakingthenews.net
Breaking the NewsUS Treasury to boost long-term bond purchases in bid to steady market
• The US Treasury has announced plans to increase its purchases of long-term government bonds to stabilize the financial market. • This strategic shift comes as Washington expresses growing concern over a sharp rise in borrowing costs that could pressure the economy.
Read original · ft.comBond market quake is bad news for governments, businesses and consumers - The Washington Post
• Long-term U.S. Treasury yields surged to their highest levels since 2007 on Tuesday, triggering a significant bond market sell-off. • In response to the volatility, the Treasury Secretary doubled the government's buyback of debt to stabilize the market.
Read original · washingtonpost.comMarkets Rally After U.S. Treasury Eases Bond Investor Stress - The New York Times
• Global markets rallied and government bond yields fell after the U.S. Treasury Department announced it would double the amount of debt it can buy back from investors. • This strategic move aims to reduce stress among bond investors by managing the supply of government debt more effectively.
Read original · nytimes.comThe US economy is running hot
• Recent economic indicators suggest the US economy remains strong despite a few isolated data points showing a slight cooling trend. • Analysts argue that these minor fluctuations are not indicative of a broader decline in consumer demand or systemic economic weakening.
Read original · ft.comUS boosts long-term debt buybacks after yields hit highest levels in years
• Treasury Secretary Scott Bessent has increased the buyback of long-term U.S. debt to address market dislocations. • The move comes as Treasury yields have reached their highest levels in several years, with Bessent specifically monitoring 10-year yields as a key financial benchmark.
Read original · business-standard.comThe Rising Stakes of the Global Bond Rout - The New York Times
• Global bond yields are rising, creating a "bond rout" that increases borrowing costs for investors and consumers. • A significant divergence has emerged between the bond market, which signals growing economic anxiety, and the stock market, which remains largely optimistic.
Read original · nytimes.comIndia’s Nifty 50 profit growth faces global headwinds By Investing.com
• India's benchmark Nifty 50 and Sensex indices have declined by 7.9% and 9.8% respectively year-to-date. • The downturn is driven by crude-oil-induced inflation and a record $25 billion in foreign capital outflows.
Read original · ng.investing.com