Prominent US Bond and Stock Bears Ackman, Gross, and Hartnett Turn Bullish on Market Outlook

Not only did Morgan Stanley and Goldman Sachs declare that the rise in US bond yields is nearing its limit, but even some of the major US bond bears, Bill Ackman and Bill Gross, are saying that the historic collapse of US bonds has gone too far.

During the trading session, a sharp reversal in yields occurred in line with the comments made by the major US bond and stock bears. The 30-year bond yield fell by approximately 21 basis points after reaching its peak of around 5.18%, while the 10-year bond yield dropped by roughly 19 basis points after surpassing 5% earlier for the first time in 16 years.

It remains to be seen if the retreat of the two prominent bears will indicate the peak of the current bond selloff. Indeed, some analysts suggest that 10-year yields rising towards 6% is not an unlikely scenario.

On the US stock side, Hartnett, one of the biggest bears in the market, believes that three out of Bank of America's four trading rules have given signals for a reversal: the BofA Bull/Bear Indicator at 1.9 (below 2%); the BofA Global Fund Manager Survey (FMS) cash level at 5.3% (above 5%); and the BofA net asset manager sales over the past four weeks at 1.1% (above 1%).