WS #14804
The 30-year Treasury yield has surged past the critical 5.50% threshold, marking the highest level since 2007 and exerting severe pressure on US equity valuations. This macro shock is driving a rotation out of high-multiple growth stocks and into value or defensive sectors, as the cost of capital rises sharply. While European markets have shown resilience, the US market is facing a technical correction as bond yields compete with stocks for capital.
Treasury Yield Shock and Equity Pressure
The 30-year Treasury yield has surged past the critical 5.50% threshold, marking the highest level since 2007 and exerting severe pressure on US equity valuations. This macro shock is driving a rotation out of high-multiple growth stocks and into value or defensive sectors, as the cost of capital rises sharply. While European markets have shown resilience, the US market is facing a technical correction as bond yields compete with stocks for capital.