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U.S. Stocks Open Lower Amid Rising Bond Yields


By Caitlin Ostroff
U.S. stocks opened lower Monday, as rising bond yields prompted concern that technology shares are looking too expensive.
The Dow Jones Industrial Average fell 198 points, or 0.6%, shortly after the opening bell. The S&P 500 dropped 0.4% and the Nasdaq Composite declined 1.4%.
Investors bets on an economic rebound later in the year have contributed to a selloff in U.S. government bonds in recent weeks. Declining bond prices result in rising yields, which have stoked concern that highflying stocks are starting to look less attractive than assets considered to be risk free.
As the yield goes up, there is more demand for [government bonds] in relation to other assets, said Hani Redha, a portfolio manager at PineBridge Investments. How much are you willing to pay for stocks? If you re only getting a very low yield from bonds, you should be willing to pay a higher amount for stocks. But that starts to change when bond yield ....

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