U.S. Treasury yields rose sharply on Tuesday, with the benchmark 10-year yield crossing above the 5% level to reach 5.029%. The 20-year and 30-year yields stood at 5.434% and 5.391% respectively, while government borrowing costs also increased in Japan, Germany, the U.K. and France. The Federal Reserve’s two-day September meeting began Tuesday with markets anticipating another rate hike. Barclays strategists noted that the 5% threshold represents a historically important inflection point, beyond which yields have typically become a more persistent headwind for equities. However, BlackRock maintained its pro-risk stance, arguing that higher rates and strong equity performance need not be contradictory.
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