Trading pattern where lower bond yields help growth stocks is breaking down

Traders work the floor of the New York Stock Exchange.

The fevered trading pattern where lower bond yields send growth stocks higher and vice versa broke this week, at least temporarily.

Yields and growth stocks were lower Wednesday. Whether that signals the trade that's been fairly well correlated since February is unraveling or not is yet to be seen. The 10-year Treasury yield fell to 1.61% on Wednesday, well off last week's high of 1.75%.

Recently when yields fell, the Nasdaq typically gained ground. But not this week. The Nasdaq, which is home to tech and many growth stocks and has dropped the most when rates rise, was down 2% Wednesday, lower for a second day, as Treasury yields also fell. Yields move opposite bond prices.