U.S. stocks’ early-year rally is melting away as Treasury yields surge

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 92%

Singapore News News

Singapore Singapore Latest News,Singapore Singapore Headlines

Market participants warn, however, that yields are reaching a danger zone where equities quickly lose their luster

. Six-month Treasuries, for example, are at their highest in nearly 16 years, offering investors 5.02 per cent on an asset many consider far safer than stocks.

The benchmark 10-year Treasury yield, which moves inversely to bond prices, is up around 60 basis points from its January lows. The firm said it was increasing allocations to short-term Treasuries, keeping exposure to developed market stocks at an “underweight” and increasing exposure to emerging markets.

Analysts at Morgan Stanley, meanwhile, noted on Tuesday that the equity risk premium – or the potential reward that investors gain by holding stocks over bonds – has now fallen to levels last seen in 2007 due to higher yields and the likelihood of earnings disappointments ahead. Golub, of Credit Suisse, is bullish on non-U.S. stocks, which he said are trading at more attractive valuations at a time when rising yields and inflation could pressure U.S. corporate costs.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in SG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Billion-dollar U.K. mass action lawsuit against Facebook over market dominance rejected - for nowFacebook on Monday temporarily fought off a collective lawsuit valued at up to 3 billion pounds.
Source: VancouverSun - 🏆 49. / 61 Read more »

Billion-dollar U.K. mass action lawsuit against Facebook over market dominance rejected - for nowFacebook on Monday temporarily fought off a collective lawsuit valued at up to 3 billion pounds.
Source: TheTorontoSun - 🏆 23. / 68 Read more »

Billion-dollar U.K. mass action lawsuit against Facebook over market dominance rejected - for nowFacebook on Monday temporarily fought off a collective lawsuit valued at up to 3 billion pounds.
Source: ottawasuncom - 🏆 4. / 92 Read more »