Rising Treasury yields have contributed to a sell-off by stock market pandemics, but it likely won’t be enough to ruin the attraction of stocks over bonds in 2021, according to an analyst.
US equity investors “focused on the recent rise in 10-year Treasury yields over the past week, which returned to mid-February 2020 levels,” wrote Lori Calvasina, head of US equity strategy at RBC Capital Markets. , in a Tuesday note. Bond yields and prices have an inverse relationship.
10-year Treasury yield TMUBMUSD10Y, 1.345% is exiting its largest rise in six weeks, which has been blamed for triggering a pullback led by the tech-oriented stocks that benefited the most. from the home dynamic created by the COVID-19 pandemic.
Related: Can the bull market in stocks survive rising inflation and bond yields? Here’s what the story says
The relationship was shown in reverse on Tuesday as yield increases eased following testimony from Federal Reserve Chairman Jerome Powell, allowing major benchmarks to write off or reduce significant losses. Nasdaq Composite COMP technology, …
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