A recent bearish hike in interest rates spooked stock market investors from around the globe. While a major shakeup may not yet be in the cards just now, experts say it’s a sign of things to come as the world’s major banks move to end easy policy.
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James Paulsen, Chief Investment Strategist at Leuthold Group said, “This is a good example of the future. If it goes on too long and too fast then it’s going to be too severe. If it’s pretty measured, I think we can handle rising rates for a while.”
The yield on the 10-year Treasury note jumped to 2.47 percent, after having breached the technically important 2.40 level just the day before.
By the afternoon, yields settled back and the 10-year was at 2.44 percent.
Stocks traded sharply, as yields touched their high point, with the downs averaging 190 points before erasing about half its losses.