Market Insider

Bond yields spike, pressuring global stocks

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Stocks poised to tumble at open

Treasury yields ripped higher Monday and early Tuesday, putting pressure on stocks and signaling a possible sea change in the global rate environment.

The move in yields on the 10-year note and 30-year bond was surprisingly rapid and violent, and strategists were hard pressed to pinpoint a specific reason for the shift. Markets will now focus on rates Tuesday, to see if Monday's high yields are just the starting point for a new trading range.

Traders in the futures pit in Chicago characterized the move as being similar to a "global margin call," where each tick higher in yield into new territory forces more repositioning. The shift higher in rates then becomes self-fulfilling until there is a capitulative spike.