Yielding Under Pressure: The Coming Confrontation in Treasuries Lori Calvasina, head of US equity strategy at RBC Capital Markets LLC, has sparked a flurry of attention with her assertion that a 5% yield on benchmark Treasury yields would challenge even the most ardent bulls on Wall Street.
Her warning is a stark reminder of the delicate balance between bond markets and stock prices. Calvasina's concerns about rising interest rates are not new; she has been sounding alarms for months.
However, her latest pronouncement highlights the precarious balance between the bond market's quest for higher yields and the stock market's pursuit of growth.