According to a research note by economist Daan Struyven on Saturday
The note says that a "stress test" of US 10-year yields out to 4.5% indicates that stocks would tumble, and the economy would probably suffer a sharp slowdown but not a recession.
"A rise in rates to 4.5% by year-end would case a 20-25% decline in equity prices", the note argued.
Last week, Goldman Sachs revised their yields forecast to 3.25% by year-end here.
Equities have recovered decently since the sharp drop in early February, and on Friday we saw Wall St post solid gains once again - which in turn is feeding into further positive sentiment in Asian equities today.
Meanwhile, US 10-year yields are settling lower despite the Treasuries auction last week showing little signs of overwhelming demand - in spite of higher yields. The US Treasury auctioned $258 billion worth of debt last week, adding to a market that is already offering bonds/Treasuries.
