Global Bond Sell-Off Puts Pressure on World Stock Markets

Yields on developed-market government bonds have climbed for several sessions in a row, becoming the main driver behind the pullback in stocks. When government debt offers higher, virtually risk-free returns, investors demand a bigger risk premium from equities, compressing valuations. Growth and technology stocks are hit hardest, since their prices largely reflect expectations of distant future profits. Analysts say further market direction hinges on whether yields stabilize or keep climbing amid inflation expectations and central bank policy. For retail investors, it's a reminder to review portfolio duration and the balance between stocks and bonds.