WS #14743
The 10-year Treasury yield climbed to 5.17%, the highest closing level since July 2007, as investors priced in persistent inflation from energy shocks and increased government spending on the Iran conflict. The US dollar also hit a two-month high against major currencies. This macro environment pressures high-multiple growth stocks and increases borrowing costs for corporations and consumers, creating a headwind for equity valuations.
Treasury Yields & Macro Inflation
The 10-year Treasury yield climbed to 5.17%, the highest closing level since July 2007, as investors priced in persistent inflation from energy shocks and increased government spending on the Iran conflict. The US dollar also hit a two-month high against major currencies. This macro environment pressures high-multiple growth stocks and increases borrowing costs for corporations and consumers, creating a headwind for equity valuations.