Bond yield
Fundamental analysisThe return a bond delivers at its current price, and the market’s reference rate.
In plain terms
Rising yields hurt expensive growth stocks most, because distant profits are discounted harder.
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Showing 2 terms
The return a bond delivers at its current price, and the market’s reference rate.
Rising yields hurt expensive growth stocks most, because distant profits are discounted harder.
Government borrowing as a share of GDP.
A wider deficit means more government borrowing, which pushes up bond yields and competes with private borrowers for the same money. It reaches share prices through the cost of capital.