Rise in Long-Term U.S. Treasury Yields not yet a Major Issue for Equities
Dow Jones
Aug 17
1126 GMT - The renewed rise in long-dated government bond yields is somewhat worrying but not yet a major problem for equities, Capital Economics' Jonas Goltermann says in a note. "Treasury yields would probably need to rise quite a bit further before that became a major headwind for equities," the chief market economist says. The recent rise in long-dated yields has come despite generally softer U.S. economic data and a consequent drop in shorter-dated yields. This is somewhat surprising in the context of a decline of Federal Reserve interest-rate hike probabilities to their lowest level since the U.S. central bank's June meeting, he says.
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