WS #14686
US 30-year bond yields are reaching their highest levels since 2004, reflecting a market repricing of long-term inflation and growth expectations. This macro backdrop is influencing global monetary policy, with the Bank of England signaling potential rate hikes due to persistent oil prices. JPMorgan notes that equities can still climb despite higher yields, but the bar for earnings growth is significantly raised, pressuring high-multiple growth stocks and financials alike.
US Bond Yields & Macro Policy
US 30-year bond yields are reaching their highest levels since 2004, reflecting a market repricing of long-term inflation and growth expectations. This macro backdrop is influencing global monetary policy, with the Bank of England signaling potential rate hikes due to persistent oil prices. JPMorgan notes that equities can still climb despite higher yields, but the bar for earnings growth is significantly raised, pressuring high-multiple growth stocks and financials alike.