(CNBC) Stocks rose to record highs on Thursday after the world’s two largest economies reportedly agreed to remove existing trade tariffs, sparking a huge rotation into equities and out of bonds.
The 10-year Treasury yield had its biggest upward move since the day after President Donald Trump was elected, trading at 1.95% from 1.81% in the previous session. Bond yields move inversely to prices.
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“The overbought conditions of 2019 are now working their way off,” said Gregory Faranello, head of U.S. rates trading at AmeriVet Securities. “Are the outcomes going to be totally constructive? Probably not, but from a market perspective these markets have been craving for something different and they’re getting it right now.”