SA: As 10-year Treasury yield nears 1.5%, watch out for an 'equities riot'

Up and Down arrow a footbridge

SEEKING ALPHA writes:

– Long-term rates are rising sharply again, with the 10-year Treasury yield approaching 1.5% for the first time in more than a year.

– The 10-year yield is up 8 basis points to 1.47%, having hit an earlier high of more than 1.49%.

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– The spread between the 10-year and 2-year… has doubled in four months to the widest gap since 2016.

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– The bond selloff is weighing on equities as valuations come under the microscope with yields rising, and there’s concern the TINA trade is evaporating.

– Albert Edwards, global strategist at Societe Generale, had said that a move to 1.5% in the 10-year would prove too bearish for stocks. But in a note today, he says equities are currently just “squishy.”

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