Not All Yield Rises Are Equal For Equities

This report argues that rising US Treasury yields do not have a uniform impact on equity markets. The outcome depends heavily on the underlying drivers of the yield increase, the speed of the move, and the broader risk sentiment.

Key Takeaways

• 1.Rising UST yields are not universally negative for equities; the outcome depends on the driver, pace, and broader market sentiment (risk-off vs risk-on).
• 2.Real yields rising alongside term premiums in a risk-off environment represent the most adverse scenario for equity performance.

Table of Contents

• Not all yield rises are equal for equities
• ARE HIGHER UST YIELDS BAD FOR EQUITIES?
• THE CONTEXT
• THE DATA
• OUR VIEW
• OTHER THINGS TO NOTE
• TODAY'S DATA RELEASES
• Author
• Editors
• UniCredit S.p.A
• Legal Notices

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