When the bond market calls the tune for stocks, it’s time for investors to proceed with caution. The 10-year Treasury yield, always closely watched, has now arguably become the most important metric for stock investors.

Yields on U.K. government debt rose to their highest levels for over 25 years and the British pound continued to sag against the dollar, as investors worry about increasing levels of government borrowing and a generally lackluster economy.

Bonds flash caution, Apple's Indonesia trouble, Costco's strong Christmas, and more...

T he new year has brought a head-splitting hangover for Britain’s government. Gilts—British government bonds—have sold off sharply in the first days of 2025, deepening a rout that has been going on for months.

UK gilt yields hit multi-decade highs, with 10-year yields at 4.90% and 30-year at 5.40%. The pound slumped to a 14-month low. Analysts debate if this is a new "Truss moment" or temporary turbulence driven by inflation and fiscal worries.