U.S. stocks finally stopped falling yesterday following data indicating a slowdown in job growth, which alleviated concerns about the Federal Reserve's monetary policy direction and put a halt to the recent surge in bond yields.

Still, strategists at Barclays warn that the bond market is likely to continue selling off, which will likely send stocks further lower.

"We do not see a clear catalyst to stem the bleeding," the strategists wrote in a note.

Barclays economists still expect the Fed to hike at least once. Hence, they were of the view that the bond markets were pricing in far too many cuts in 2024. As a result, the rate strategists continuously urged Barclays' clients to stay short bonds.