Market Notes

Duration: Why a Higher Long Bond Yield Reprices Growth Stocks Before It Reprices the Economy

· 6 min read · by Dr. Ellis Grant, Nova Ventures Research

Duration is the bond-desk measure that also prices stocks. When the 30-year yield jumps, cash flows far in the future get marked down first — which is why growth names can sell off even when the economy, and next quarter's earnings, have not changed.

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