By Michael Msika, Bloomberg Markets Live reporter and strategist
Bond yields keep rising and are now approaching levels where stock investors could start feeling the stress from less accommodative monetary policies.
The US 10-year Treasury yield is hovering near 4.7%, the highest since April after an almost uninterrupted surge of more than one percentage point since the Fed's cut in mid-September. The move echoes that of July-October 2023, which was accompanied by a 10% drop in global equities. Yet this time, the stock rally has only taken a gentle breather, leaving scope for downside should yields keep surging.
