A rally in 10-year government bonds means one thing: the stock market is going nowhere fast

A rally in the 10-year Treasury note, driving yields lower, Tuesday is implying that investors are picking up long-dated bonds, perceived as havens, in favor of stocks. The 10-year Treasury yield
TMUBMUSD10Y, -2.78%
hit a nadir around 2.79% during Tuesday’s action, representing the lowest closing yield since Feb. 6, according to WSJ Market Data Group (based on 3 p.m. ET closes). Bond prices rise as yields fall. Bond buying comes even as the market has been digesting some $300 billion in issuance slated for this holiday-shortened week for the fixed-income market, with Good Friday marking a holiday for the market. More issuance should drive yields higher, in theory. Meanwhile, the equity benchmarks unraveled, notably the Nasdaq Composite Index
COMP, -2.93%
ended the day off 2.9%, cutting deeply into the technology-laden index’s 3.3% return on Monday. The S&P 500 index
SPX, -1.73%
closed down 1.7% at 2,612, while the Dow Jones Industrial Average
DJIA, -1.43%
made up of 30 components, ended down 1.4%, led by sharp slumps in shares of Apple Inc.
AAPL, -2.56%
and Microsoft Inc.
MSFT, -4.60%
Much of Monday’s rise was attributed to a lessening of worries around trade conflicts between the U.S. and China, but Tuesday’s trade suggests that investors are more eager to buy long-dated bond than make a definitive wager on another blockbuster day for technology shares and the broader stock market, considered risky, after the Dow’s 670-point surge a day earlier.

Quote References TMUBMUSD10Y -0.08 -2.78% COMP -211.74 -2.93% SPX -45.93 -1.73% DJIA -344.89 -1.43% AAPL -4.43 -2.56% MSFT -4.31 -4.60% Show all references
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