Trading the global bond market panic
Traders on the floors of Wall Street can't stop talking about the turmoil in the global bond market this week. The 10-year Treasury yield touched 2.42 percent Thursday, its highest level of the year and up from 2.09 percent a week ago. The yield on the German 10-year bund also hit its 2015 high. These are not the kind of moves that should happen in the supposedly very liquid and stable global bond market. The reasons for this vary. Some traders believe investors are dumping bonds in response to strong economic data and the possibility of a smooth resolution to the Greece situation with the European Union . While others believe it's because of a sudden lack of liquidity in the bond market and investors are running for the exits of a long-term bond bull market. Regardless, here's a way to trade this turmoil. Utilizing Kensho, a quantitative tool used by hedge funds, CNBC Pro looked at what happened to stocks when long-term interest rates surged over a 30-day period. The graphic below shows which stocks had the biggest 30-day return on average and what percentage they traded positively during the duration of those trading periods. There are a few trends that reveal themselves from the historical stock performance displayed above. The top performers are chemicals company LyondellBasell , automaker General Motors and clothier Ralph Lauren . These stocks all do nicely when the economy does well and in the past a rise in rates signified just that: a cyclical turn higher in the economy. Read More Goldman: Buy unloved stocks to beat benchmark Some strategists believe the latest move in rates is signaling economic improvement once again. "The yield curve is a valuable leading indicator as it provides a good signal of troubles coming to fore and for now it is suggesting blue skies for the U.S. economy, despite any narrative to the contrary," said David Rosenberg, chief economist and strategist at Gluskin Sheff, in a note to clients Wednesday. Morgan Stanley makes it because the bank's profit margins improve as the difference between short-term interest rates and long-term yields widens. A pick-up in trading activity triggered by the rate rise doesn't hurt commissions on the firm's bond desk either. Here are the losing stocks, according to Kensho. Gold shares like Newmont Mining take a hit as rising rates impact the value of bullion. Utilities such as Southern Co , Exelon and FirstEnergy get hit as rising bond yields begin to make those stocks' big dividend yields less attractive. Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.

Traders work on the floor of the New York Stock Exchange. Getty Images