The US debt pile has crossed $40 trillion just as its fiscal position deteriorates and bond yields edge towards a level that could shake equity markets, according to Jefferies strategist Christopher Wood.
Wood identified a move above 5% in the 10-year US Treasury yield as the “obvious trigger point” for near-term equity risk. The yield stood at 4.69% after touching 4.746% on Tuesday, leaving markets uncomfortably close to that threshold.
