US Bond Yields Near 5%: What It Could Mean for Stocks, Corporate Borrowing and the Economy
Rising Treasury yields are testing mega-cap tech valuations as Microsoft’s cash-rich balance sheet contrasts with Alphabet’s heavier debt and negative free cash flow.
10 Articles
10 Articles
The US economy is strong, inflation expectations are rising, and the maturity premium shock is driving up long-term bond yields. Normally, this would put significant pressure on equity valuations, while equity market valuations are at record levels. However, US indices are still near their all-time highs. The messages from the bond and equity markets are becoming increasingly difficult to reconcile. The key issue is therefore not necessarily the…
Look Very Hard at Microsoft and Alphabet as Rate Hike Fears Roil Markets
Azure and Google Cloud are posting jaw-dropping growth numbers just as Treasury yields hit levels that have historically crushed high-multiple tech stocks. Whether Microsoft's fortress balance sheet or Alphabet's cheaper valuation wins this rate-scare showdown could determine which mega-cap compounds your portfolio through the turbulence.
The Economic Times
Times of IndiaUS bond yields near 5%: What it could mean for stocks, corporate borrowing and the economy
US 10-year Treasury yields are nearing the 5% mark, raising concerns over the impact of higher borrowing costs on stocks, corporate financing, dealmaking and the broader economy. While elevated yields can pressure valuations and debt servicing costs, they may also signal stronger economic growth and robust demand for capital.
Trouble in US bond market could mean higher prices are here to stay
Americans who have been grappling with the higher cost of living over the last few years now face another issue: trouble in the US bond market that could mean elevated costs are here to stay. US government bonds – known as treasurys – are supposed to be the most stable type of investment vehicle.…
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