Bond Market Signals Warning as Yields Rise Amid Inflation Fears

The bond market is sending out warning signals to investors, and history suggests this could be a cause for concern. Bond yields have been rising as investors fret about inflation, which has led to a Federal Reserve rate increase.

Higher bond yields make stocks less attractive, but high inflation can lead to something even worse. Despite this, the S&P 500 index is trading near all-time highs despite a worrying list of negatives.

JPMorgan Chase CEO Jamie Dimon recently expressed his concerns about 'tectonic plates' that could collide and cause a market earthquake. The bond market is clearly concerned, with yields rising, and the Federal Reserve is also worried, having increased interest rates.