WS #14742
The 10-Year Treasury yield reached 5.17%, the highest since 2007, pushing 30-year mortgage rates to 7.03% and threatening emerging market carry trades. Despite this tightening financial condition, the S&P Global US Composite PMI jumped to 58.4, indicating robust economic expansion driven by the services sector. This divergence allows equities to hold up through sector rotation rather than broad risk-off selling.
Macro Rates and Economic Data
The 10-Year Treasury yield reached 5.17%, the highest since 2007, pushing 30-year mortgage rates to 7.03% and threatening emerging market carry trades. Despite this tightening financial condition, the S&P Global US Composite PMI jumped to 58.4, indicating robust economic expansion driven by the services sector. This divergence allows equities to hold up through sector rotation rather than broad risk-off selling.