stock market

Robin Harding

Yes it does, according to a new working paper from a group of Chinese and Swiss academics, published as a preprint.

Using both monthly and weekly data, we found very similar lead-lag dependence between the S&P500 stock market index and the yields of bonds inside two groups: bond yields of short-term maturities (Federal funds rate (FFR), 3M, 6M, 1Y, 2Y, and 3Y) and bond yields of long-term maturities (5Y, 7Y, 10Y, and 20Y)….First, the stock market and yields move in the same direction. Second, the stock market leads the yields, including and especially the FFR.