Fundamentally, stock prices and long-term interest rates reflect market views about the economic outlook, so we should strive to correctly understand these views. Having said this, it is also true that markets can often move irregularly in response to a variety of factors.
For example, in the United States, the 10-year long-term interest rate rebounded to the mid-4 percent level after falling to around 3 percent in June. As factors behind this gyration, many point to the deterioration of the fiscal balance and the hedging activity of investors in mortgage securities, in addition to changing views about the economic outlook.