Rising Bond Yields Above 5% Could Spark Stock Market Correction
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The 30-year Treasury bond yield rising above 5% opens the door to more sustainable increases, which could hurt financial markets.
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Higher yields mean investors will demand more compensation for risk, widening credit spreads.
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Attractive government bond returns may draw investors away from stocks, making equities vulnerable.
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Strong September jobs data points to more Fed rate hikes, adding to uncertainty and volatility.
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Prolonged high yields above 5% will weigh on risk assets and spur a more meaningful stock market correction.