Definition. The return an investor gets from US Treasuries at the current price. The 10-year yield is the one watched most often.
How it works
Bond prices and yields move in opposite directions. Rising yields raise the cost of capital and can lower equity valuations, especially for growth companies.
Example
A sharp rise in the 10-year yield after macro data often accompanies declines in stock indices.
What to watch out for
The relationship between bonds and stocks changes over time and isn't constant.
You'll find the full explanation with graphics, examples and exercises in the 🖥️ Order flow atlas space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).
