Yields: Equities Yields

yields: This divergence between equities and yields goes against textbook finance theory, drawing questions of how long this benign environment for both risk and haven assets can last, according to Market Watch. The truth could be somewhere between what stocks and bonds are saying. Yet market participants say these gains have led equities and debt yields to send wildly contradictory signals over the U.S. economy's health, with the rise in equities indicating the recent slowdown will only remain a soft patch, even as the rise in bond prices and slide in yields imply a more pessimistic outlook for the rest of the year. But it's unsustainable, Franck Dixmier, head of global fixed-income at Allianz Global Investors, told Market Watch. A positive correlation reflects when two indicators move in sync, while a negative correlation shows when they move in opposite directions. See The traditional stock-bond correlation disappeared in 2018, spelling trouble for investors Analysts say the driver for these investment riches has been a dramatic breakdown of the positive correlation between stocks and bond yields in 2019 - when equities rise, bond prices fall, pushing yields higher. (news.financializer.com). As reported in the news.