Rising Treasury Yields Challenge Stocks as Investors Recalculate Portfolios
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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.
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Corporate earnings reports this quarter may determine if stocks can still rally amid rising yields.
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A supply/demand imbalance in the Treasurys market, with more issuance but fewer buyers, could keep yields elevated.
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The S&P 500 dipping below its 200-day average challenges the durability of the current bull market.
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With the government needing to issue more debt but finding fewer buyers, Treasury yields may stay high, pressuring corporate bond yields.
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