Rising Yields Are Killing This Group of Stocks
Rising yields are sending mortgage rates sharply higher and damaging the housing market.
Overview
Rising bond yields can damage many industries and even the broader economy, as they set borrowing rates for many types of loans and can squeeze consumer spending and corporate profits alike. But if you're a homebuilder, you're really feeling the pinch right about now. Here's why.
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Yields on Treasury securities have been rising steadily this year, as bondholders have continued to sell their notes and bonds, sending prices down and yields, which move in the opposite direction, straight up. The 10-year yield hit 5.2% last week, up 1.26 percentage points from its level in late February, just before the war in the Persian Gulf began.
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Source
Originally published at www.fool.com.