Most global stock indices are extending yesterday’s losses, but flight-to-quality trades have held up unlike the post‑Trump “liberation day” market mayhem. Balanced portfolio managers are relieved as bonds, though not rich‑making, typically buttress equity returns when “stonks” stall. A chart of the 10‑year US Treasury bond yield versus the S&P 500 e‑mini future shows a generally inverse relationship: equity declines tend to lower bond yields, lifting bond prices.
The 12‑basis‑point yield rally since the close of business on November 3 translates to roughly a 1‑percentage‑point total return on 10‑year bonds. While this gain does not offset the 4‑5 % drop in US stock portfolio values, it provides a modest cushion. The picture for other sovereign markets is less clear; French OATs may have become the preferred safe asset, though a massive rally could also reflect hedge‑fund short‑covering.
Further reading includes “How nervous are bond markets about France?”.
Source: Financial Times Markets · Summarized by HeadlinesBriefing