Stocks drive treasury yield moves

Group 1 - The Treasury market has experienced significant volatility, with 10-year yields currently at 4.14%, up four basis points for the week, while two-year yields have also increased by four basis points [2] - The performance of the Treasury market is closely linked to stock market movements, particularly the S&P futures, which trade nearly 24 hours and show a correlation with Treasury yields [2] - European counterparts, particularly the UK and France, are facing fiscal challenges, with the UK having a £20 billion budget deficit, leading to rising yields in their bond markets [3][4] Group 2 - Despite the upward trend in yields, the Treasury market has not reached its highest yield close for the month, indicating a persistent expectation of high yields [5] - The relationship between equity markets and Treasury yields is highlighted, where declines in equities lead to lower Treasury yields, and recoveries in equities result in rising yields [6]