Rising Treasury Yields Challenge Stocks as Investors Recalculate Portfolios

For the first time in years, the 10-year Treasury yield nearing 5% is forcing investors to recalculate asset allocations as bonds become more competitive with stocks.

Corporate earnings reports this quarter may determine if stocks can still rally amid rising yields.

A supply/demand imbalance in the Treasurys market, with more issuance but fewer buyers, could keep yields elevated.

The S&P 500 dipping below its 200-day average challenges the durability of the current bull market.

With the government needing to issue more debt but finding fewer buyers, Treasury yields may stay high, pressuring corporate bond yields.