A note from JP Morgan points out what we all suspect:
- “Any breakoutt in bond yields beyond 5% will likely be seen as a problem for the economic outlook and equities will generally struggle against that backdrop”
Well, yeah. Equities already had a tough time when yields took a look around 5%.
More from JPM:
- defensive stocks could outperform if yields keep moving higher
- JPM add in real estate in Europe to utilities and staples as likely defensive outperformers
![US 10 year Yield chart 14 November 2023](https://images.forexlive.com/images/US%2010%20year%20Yield%20chart%2014%20November%202023_id_b970953d-6428-4d0e-a290-e3b2976fe5b5_size900.jpg)