These two market gauges may signal a big risk-off event for the market, says BofA

Bank of America is flagging a combination of two market signals that, taken together, may point to a broader risk-off event. The first is rising anxiety in the bond market, where shifting yields and credit conditions can reflect growing uncertainty about the economic outlook. The second is a selloff in financial stocks, a sector often viewed as a bellwether for stress across the wider market.

What makes the pairing notable is that these gauges are being read together rather than in isolation. Bond-market stress can tighten borrowing conditions, while weakness in financial shares may suggest investors are questioning the health of lenders and the flow of credit. When both move in the same troubling direction, it can reinforce a cautious tone across asset classes.

For observers, the key question is whether these signals prove temporary or develop into a sustained trend. Watching how bond yields, credit spreads and financial-sector performance evolve in the sessions ahead may offer clues about whether broader risk appetite is genuinely deteriorating.