The relationship between stocks and bonds has completely flipped: The 90-day correlation between the 10Y Treasury Yield and the S&P 500 is down to -0.48, its most negative reading since 1999. This means that rising Treasury yields have recently been associated with weaker stock market performance, while falling yields have supported equities. The current reading is even more negative than the 2022 bear market low of -0.42. For context, before the 2020 pandemic, the correlation was positive for over a decade, with Treasury yields and equities often rising together as higher yields reflected stronger economic growth. Currently, the negative correlation suggests investors are viewing higher yields less as a sign of economic strength and more as a result of inflation uncertainty and fiscal concerns. All eyes are on the bond market.