Rising Sovereign Bond Yields Could Weigh on Risk Assets
Dow Jones
Sep 24
0858 GMT - Accelerating government bond yields could hurt risk assets, Tickmill Group's Patrick Munnelly says in a note. U.S. 10-year Treasury yields rise to their highest since 2007 at 5.148%, according to Tradeweb, as markets price in the possibility of more interest-rate increases by the U.S. Federal Reserve over the coming months. Steady economic growth and concerns about inflation have caused markets to expect multiple interest-rate rises by key central banks over the next year, LSEG data show. "If yields keep climbing toward new cycle highs, risk assets will struggle, even with constructive AI and trade headlines," Munnelly says.
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