Global bond sell-off could hit recovery in US equities

The sell-off in global bonds over the last month has raised concerns that the recovery in US equity markets could be derailed. Since bottoming on 13 June this year, 10-year US treasury yields have increased 130 basis points after the Fed cut rates by 25 basis points rather than the 50 anticipated by the market. European government yields also saw a 60 basis point lift over the same period. Jim O'Neill, an analyst at Goldman Sachs, noted the sell-off was partly a reaction to the 100 basis point drop in Treasury yields between early-May and mid-June, triggered by the Fed hinting short r...