Ed Yardeni is not yet worried about rising sovereign bond yields impacting stocks. The 30-year U.S. Treasury yield is approaching 5.3%, a level not seen in roughly two decades, while yields in Germany, Japan and other countries have also risen. Global equity markets came under pressure but largely held steady, with Japan’s Nikkei 225 plunging 2.5%. Yardeni, president of Yardeni Research and creator of the Bond Vigilantes concept, is not sounding the alarm but is monitoring the situation more closely now that the 10-year yield is approaching 5%. He believes the U.S. 10-year yield should trade in a range of 4.00% to 5.00% without causing adverse consequences for the economy and corporate earnings.
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