Reported 4 months ago
The recent rise in U.S. Treasury yields, with the benchmark 10-year yield hitting nearly 4.64%, is causing concern for the stock market, which has been hitting record highs. Investors worry that the rise in yields could impact stocks negatively, as higher borrowing rates could affect consumer spending and business profits. The interplay between stocks and yields has been a key market dynamic this year, with some seeing reasons for yields to keep rising due to concerns about inflation, the U.S. fiscal deficit, and weak Treasury auctions. If the 10-year Treasury yield surpasses 4.7%, it could lead to more significant impacts on earnings and growth in the stock market.
Source: YAHOO