
Bond Selloff Is Mostly a Fed Story, Says BofA's Cabana
Mark Cabana, head of US rates strategy at BofA Global Research, explains the factors he sees contributing to the US bond selloff.
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Mark Cabana, head of US rates strategy at BofA Global Research, explains the factors he sees contributing to the US bond selloff.

US stocks opened lower on Tuesday as stalled negotiations between the US and Iran pushed oil prices higher and government bond yields remained elevated. Rising Treasury yields also weighed on technology and semiconductor stocks, with investors assessing the potential impact of persistent inflation and higher borrowing costs.

Record highs are what bull markets do. If you wait for a 20% drop, you could still pay more than what you'd pay now.

US stock futures fell on Tuesday as a fresh bond-market sell-off and oil above $90 revived the inflation risk investors had hoped was fading. Nasdaq 100 futures were down 1.17% at 4:50 am ET, S&P 500 futures lost 0.55% and Dow futures slipped 0.15%.

Earnings this week are covering the retail sector, providing a health check of U.S. consumer spending that makes up the majority of GDP.

Stocks are pointing to a lower open Tuesday with tech stocks looking set to pull back and investors growing concerned with affairs in the Middle East; a range of AI-related stocks, including chip and memory component manufacturers, are falling this morning; inflation fears and interest in the debt of big tech companies are driving Treasury yields to their highest point in years; Home Depot beat estimates in its second-quarter earnings report; and Baidu shares are falling after the Chinese tech giant's second-quarter results fell short of forecasts.

Higher interest rates, a global slowdown, political instability and AI capex are just four things about which investors aren't especially troubled in late summer.

Economists at the European Central Bank warn heady stock market valuations are likely to suffer a correction, even if they fairly reflect the ways in which AI will transform society. History suggests investors will demand higher and higher risk premia as the success or failure of key companies becomes pivotal to the global economy, they said in an analysis published this week.

CareTrust REIT is upgraded to 'Buy' after a price pullback, offering a rare blend of yield and high growth. CTRE's diversified platform, robust pipeline, and focus on quality operators underpin 16% FFO/share growth guidance for 2026. A strong balance sheet and 4% yield support continued dividend growth and total return potential.

Ed Yardeni, Yardeni Research president, joins 'Squawk Box' to discuss the latest market trends, bond yields, state of the economy, and more.

The Federal Reserve is halting Reserve Management Purchases (RMPs), ending a period of balance sheet expansion and shifting to a tightening stance. Fed RMPs had absorbed all net-new Treasury Bill issuance since December, supporting T-Bill demand and suppressing yields during record government borrowing.

Chipmakers from Nvidia (NVDA) to Micron (MU) losing steam ahead of Tuesday's trading session are the biggest culprits behind premarket weakness. Tom White gauges the sustainability of these fluctuations on Wall Street as investors also grapple with the U.S.-Iran war.

Goldman Sachs said it had reached an agreement to buy private real-estate investment firm LCN Capital Partners in a deal worth up to $410 million.

Carl Weinberg, chief economist and managing director at High Frequency Economics, discusses the sell-off in sovereign bond markets. He argues that rather than being driven by bond vigilantes, rate hike expectations or inflation concerns, rising yields may reflect a “crowding out” effect caused by the borrowing needs of the AI investment boom.

Anthony Scaramucci, SkyBridge Capital founder and managing partner, joins 'Squawk Box' to discuss the latest bitcoin price trends, whether there are any near-term catalysts, impact of the Clarity Act, state of crypto, and more.