Dow Falls as Bond Yields Soar

Record high yields threaten higher mortgage rates

By Peter Fearon, Newser Staff

Posted Jun 13, 2007 7:13 AM CDT

(Newser) – US bond yields have hit a five year high—bringing the threat of higher interest rates, costlier home mortgages and a slowing economy, the Wall Street Journal reports. The benchmark 10-year Treasury note rose to 5.25 per cent yesterday. Rising bond yields echo throughout the economy, making stocks less attractive to investors.

That was reflected in a 130 point—or 1%—drop in the Dow yesterday. One investment banker told the Journal: "Many people have rationalized their involvement in risky assets like stocks by saying that bond yields are low, and now they're rising and catching people off guard."

' (Associated Press)

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Threat of Rising Bond Yields

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Markets Ignore Upbeat News, Head Down

Oil hits new record at $78; all major indexes down more than 1%

Pound Soars Against Dollar

Sterling passes $2.02, raising hopes and filling coffers

Dow Closes Down 80.86 on Inflation Scare

Bernanke comment, retail profit warnings contribute to slump

China Loosens Up on Yuan

Currency move may be concession to US—or attempt to pop a stock market bubble

Murdoch Muses On Plans for The Journal

“I’m sometimes frustrated by the long stories," would-be owner says

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