Market Insider

Bond market in lull, but are yields bottoming?

Market's mixed messages

With stocks hitting yet another high, the question is whether bond yields could be getting ready to lift off.

On Tuesday, the rose 11 points, to 1,911, its second record-setting session in a row. The Dow was up 69, to 16,675, just 60 points from its all-time high. The Nasdaq surged 51 points, to 4,237, and even the battered small-cap Russell 2000 surged 1.4 percent, to 1,142.

Stronger data—better consumer confidence, stronger durable goods and improving home prices— combined to help stocks move higher Tuesday. But the bond market took the data in stride and instead of selling off—prices rose and yields moved lower. The 10-year touched 2.51 percent in late trading, well off its 2014 low of 2.47, from May 15.