EDITOR'S NOTE
The rebound in Treasury yields appeared to gain momentum and spill over into the equity market on Thursday, with the 10-year yield crossing several major milestones. The benchmark bond rate broke above 1.5% and 1.6% for the first time since February of 2020 during the session. It finished the day near 1.51%, a gain of roughly 12 basis points.
Thursday's move also put the 10-year yield above the dividend yield of S&P 500. Rising yields can put pressure on both stocks with high valuations, whose future cash flows look less attractive amid higher rates, and dividend payers, which would face more competition from bonds. 
The spike above 1.6% came after a weak auction for 7-year notes, and yields quickly pulled back from that high, which some traders called a "flash move."
These dramatic moves may reach an uneasy calm over the next couple of days as fixed income investors assess their new neighborhood, Credit Suisse analysts said in a note.
"With a whole host of tactical objectives also met across core rates markets ... we shift to a tactically neutral stance in the very short term and expect price action to become choppier from here," the note said. TOP NEWS
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