Analysis-'Bothersome' rebound in US yields casts shadow on stocks at record highs

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Stan Rogers Folk Festival 2024: 27 years of music and community | SaltWire #festival #music #nsNEW YORK - Treasury yields are on the rise again, presenting a potential obstacle to a U.S. stock rally that has taken major indexes to record highs.

Persistent concerns about the mounting U.S. fiscal deficitand weak Treasury auctions have also kept yields elevated, as an expected deluge of government debt around the world is set to test investors' appetite in June. Higher yields translate to higher borrowing rates for consumers and businesses, which could weigh on the economy and companies' bottom lines.

The WFII recommends investors overweight bonds versus stocks, and is targeting the S&P 500 to end 2024 in a range of 5,100 to 5,300. The index was last at 5,235.48. Fed policymakers have urged patience on rate cuts, saying they need to see several months of data to be sure inflation is heading back down to the central bank's 2% target. Futures that track the fed funds rate show investors pricing in just 35 basis points of rate cuts this year, according to LSEG data, from more than 150 basis points priced in January.

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Analysis-'Bothersome' rebound in US yields casts shadow on stocks at record highsTreasury yields are on the rise again, presenting a potential obstacle to a U.S. stock rally that has taken major indexes to record highs. The benchmark 10-...
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