Published Sep 27, 2026, 9:45 PM ET · Updated 2 months ago · 1 source
Rising bond yields increase stock-bond correlation, undermining diversification
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As bond yields, especially in longer durations, rise (with the 30-year bond yield surpassing 5.4% and the S&P yield at 5.24%), the statistical likelihood of stocks and bonds moving together increases, which undermines the traditional diversification benefits investors expect from holding both asset classes.