Investors looking to find potential tipping point for equities..
"Investors are now scrambling to identify the potential tipping point for equities.
“If we see a gradual increase in yields over the course of this year and next year, that is something the equity market is happy to digest,” said Kiran Ganesh, a multi-asset strategist at UBS Global Wealth Management. “If things happen a bit more quickly . . . that could lead to more substantial problems.”
The prospect of a $1.9tn stimulus package coming out of Washington, pent-up demand from months of social curbs, and loose monetary policy from the Federal Reserve have pushed inflation expectations to their highest in years. One metric derived from US inflation-protected government securities — the 10-year break-even rate — recently rose to its highest point since 2014, at 2.2 per cent."
source: US bond sell-off stirs warnings over stock market strength, FT
“If we see a gradual increase in yields over the course of this year and next year, that is something the equity market is happy to digest,” said Kiran Ganesh, a multi-asset strategist at UBS Global Wealth Management. “If things happen a bit more quickly . . . that could lead to more substantial problems.”
The prospect of a $1.9tn stimulus package coming out of Washington, pent-up demand from months of social curbs, and loose monetary policy from the Federal Reserve have pushed inflation expectations to their highest in years. One metric derived from US inflation-protected government securities — the 10-year break-even rate — recently rose to its highest point since 2014, at 2.2 per cent."
source: US bond sell-off stirs warnings over stock market strength, FT