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
'   (Associated Press)

(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."