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Bonds are making relics of growth stocks and TINA

Yahoo Finance's Jared Blikre joined Yahoo Finance Live to break down the latest action in the bond market.

Video Transcript

SEANA SMITH: Well, let's stick with the bond market because it certainly is driving a lot of today's action. We want to get to Jared Blikre with his final thought. Jared.

JARED BLIKRE: Yeah, it's been all about the bonds. And you talk about volatility. Well, the move index, which is kind of the VIX of the bond market, that's been on the rise, too. And typically, that doesn't happen when the Fed is still printing money, expanding its balance sheet. So, a little bit of a contradiction there we're going to watch-- want to watch.

Now, this is a 10-year T-note yield at one-year highs here, 1.37%. I guess my big take is, guess what? There is an alternative. So forget TINA. Now we have the bond market. And as bond yields rise, there are going to be periodic moments where we attract in the US foreign capital, the dollar strengthens. And it kind of creates a risk moment-- risk off moment for equities.

But you think about the incredible tailwinds from monetary and fiscal policy that we have before us, along with a new administration. Everything's setting the stage for a nice run into the back half of the year, as I keep saying. But you've got to watch that inflation, guys because we're spending a lot of money here, aren't we?