The stock market continues to trade near record highs, but earlier this week, the bond market plunged, with the yield on the 10-year Treasury soaring to its highest level in more than a year. Is this a one-time anomaly or a sign of worse things to come?
In the following video, Fool contributor Dan Caplinger goes through what happened to bonds and the potential impact it has for investors. As Dan notes, the potential impact of the move goes well beyond the bond market, as many parts of the stock market could also suffer from falling bond prices and higher yields. Dan encourages investors who don't usually track bond yields to start paying attention in order to avoid unpleasant surprises further down the road.
Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.