has been pegged under $26,300 since June 10, reflecting a 14.8% correction in two months. In the meantime, the Nasdaq Tech Inventory Market Index rose 13.6% over the identical interval, suggesting that traders aren’t precisely fleeing to the protected haven of money and short-term debt. The truth is, demand for U.S. authorities bonds has fallen for the previous six weeks.

For instance, the two-year Treasury yield rose from 3.80% on Might 4th to 4.68% on June 14th. When demand for bonds declines, funds rise, and yields rise in consequence. If traders consider inflation will stay above goal, contributors are likely to demand increased yields when buying and selling bonds.

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