https://www.proquest.com/docview/2778806612/DB404AFE56AC4F7BPQ/1?accountid=27715

Topics: Bond Yields, Stock Prices

Summary: U.S. government debt has reversed its early-year rally, sending Treasury yields higher than where they finished 2022. That is threatening to end a brief reprieve for stocks and riskier types of bonds, which both languished last year as yields climbed rapidly. Classroom Application: This article provides an opportunity to discuss the inverse relationship between bond prices and bond yields, the interrelationships between stocks and bonds, and, more broadly, the Federal Reserve and monetary policy.

Questions: Why have bond yields increased recently? Why have revised expectations regarding interest rates negatively impacted stock prices? Why do tighter financial conditions support the Fed's efforts to tame inflation?