Fed Speculates Higher Bonds Yields, Sinking Stocks

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With the rising sentiments of consumers about the Federal Reserve's next step, the US stocks that were sold and the bond yields from the government increased. This was done last Friday after the improvement on factory activities in the Midwest.

In nearly 2 and half years, the US Treasury debt price ended on its worst this month. The bond yields ended their highest in a period of 13 months. The increase took place even when inflation was in constant drop down due to slow growth.

At the day's end, Wall Street experienced a slide giving Dow industrials 200 more points. Even with the rebalancing of the MSCI stock indexes, the 3 major US stocks fell higher than one percent. On the other hand, the bond market improved in the latter part of the day. This was because of its late surge buying. It has also slightly pushed the price of 30 year bond.

Tags
US Treasury, Stock exchange

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