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