Global Bond Yields Peak: Risks Increase for Major Borrowers

The surge in global bond yields to peak levels could pressure growth stocks by raising long-term discount rates. GOOGL has risen 4% in the last 24 hours and with an RSI of 55, it is not in overbought territory, but it remains below the MACD signal line, indicating weakening momentum. Although the price is above the SMA20 and SMA50, the increase in bond yields could trigger profit-taking in the short term. Nevertheless, a strong balance sheet and low debt levels may make GOOGL more resilient compared to other indebted companies. Therefore, downward pressure may be limited and the news impact could neutralize within 1-3 days.

TLT represents long-term US Treasuries and rising global bond yields put downward pressure on prices. The news headline emphasizes that rising yields pose a risk for large borrowers, indicating that selling pressure in the bond market may continue. Technical indicators are already weak: the price is below the 20- and 50-day moving averages, RSI at 41 is in neutral-weak territory, and MACD is negative. This outlook suggests that downside risk remains in the short term. However, I also consider that the decline may be limited because RSI is not approaching oversold territory and the news may already be priced in.

The surge in global bond yields to peak levels may bolster safe-haven demand and support the DXY. However, the DXY is already at 99.65, with its RSI at 60 approaching overbought territory; the MACD is below its signal line, indicating weakening upward momentum. The price is trading slightly above the SMA20 and SMA50, suggesting limited upside potential in the short term. The impact of the news may be limited as the market may have already priced in these risks. Nevertheless, if the rise in bond yields continues, a moderate upward move in the DXY could be seen.