Dow Falls for Third Straight Day as Bond Yields Climb to Fresh Highs

The Dow Jones Industrial Average fell for a third consecutive day as Treasury bond yields climbed to fresh highs, according to CNBC. The move in yields came as traders positioned for the possibility of further interest rate increases from the Federal Reserve.

Rising bond yields typically make fixed-income investments more attractive relative to stocks, and can also increase borrowing costs for companies, both of which can weigh on equity markets. The third straight day of losses for the Dow suggests investors are recalibrating their expectations for the path of monetary policy.

What's Driving the Moves

Expectations of additional rate hikes from the Federal Reserve tend to push yields higher as markets price in tighter monetary conditions. CNBC's report did not specify the particular data points or Fed commentary that prompted traders to anticipate further rate increases, nor did it detail which sectors of the Dow were most affected by the pullback.

Markets are likely to remain sensitive to further signals from the Federal Reserve in the coming sessions as investors assess the outlook for interest rates.