Stocks and bond angst closely linked move index shows
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Equity investors have become increasingly wary of the Treasury market of late, concerned not just about the impact on corporate finances of higher implied borrowing costs but also what the
rising yields say about waning demand for U.S. assets. The chart below, supplied by Michael Kramer at Mott Capital Management, illustrates just how closely correlated sentiment in stocks and
bonds has become. It shows the ICE BofA MOVE index, a sort of VIX for the Treasury market, inverted and set against the S&P 500.