After writing the below I realize it is not making any hard conclusions and does not necessarily even know what its point is. Consider it an exercise by one market watcher to just toss around thoughts.
Lately the market has chosen to fear rising long-term yields even though those same yields have been the guide to the bullish market for nearly a year now.
The 30yr yield is up big this morning and stock and asset market futures are down. But it’s not so much fear of rising yields that have stopped stocks as it is the still-bouncing US dollar. What appears to be happening is that yields are rising out of inflation concerns (which generally hit new highs yesterday) while the US dollar is sopping up the bid as stock market players raise cash (as for the bouncing dollar, ECB policy action could be temporarily weakening the Euro, thus strengthening USD).
Here is the big picture Continuum for reference. The yield is close to the 2.5% to 2.7% caution zone. I still expect it to bang into that zone, perhaps hard. But that does not mean the aversion stock market players suddenly have to rising yields will not persist. The other side of the coin is that the Banks/Financials and a few other reflation-sensitive (but not necessarily USD sensitive) areas could out perform. USD is still indicated to be on a counter-trend bounce.