Could a '94 style bond bloodbath derail the recovery?

The recent surge in Treasury yields is unlikely to develop into a 1994-style bond collapse, principally because the outlook for monetary policy is completely different. Furthermore, for those worried that the recent rise in long-term interest rates will derail the recovery, it is worth remembering that the 1994 surge did not end in recession, but rather was followed by five years of unusually strong economic growth and unprecedented gains in stock markets.