Hedge fund CIO warns of historic bond-market rout's threat to stocks

The worst bond-market rout in history, with 10-year yields above 5% for the first time since 2007, poses a grave threat to stock prices, warns hedge fund CIO David Neuhauser. The collapse in bond prices will cause significant pain for the economy, as the previous bull market in bonds and low interest rates fueled affordable housing and autos. The surge in bond yields leads investors to pivot to lower-risk fixed-income assets, impacting stock performance. Additionally, the recent sell-off may be driven by "bond vigilantes" aiming to pressure the US government to reduce borrowing.