While doomsday prophets continue to raise the alarm and spook investors about negative implications for equity markets and interest rate scenarios if the benchmark 10-year US Treasury yield crosses 5%, some analysts feel the fears are overblown.
The 10-year US Treasury yield has risen above 4.9% and is marching towards the crucial 5% level that it had last hit briefly in 2023. Yes Securities issued a contrarian bet, saying the rise in global yields increasingly reflects stronger nominal growth, a structurally higher equilibrium real rate and synchronised global monetary normalisation, rather than deteriorating economic fundamentals or an imminent fiscal crisis.
