Rising Bond Yields Are Driving US Stocks Toward Correction Territory: Markets Pulse

A Bloomberg Markets Pulse survey of 122 market participants revealed growing concerns that escalating bond yields pose a significant threat to equity valuations. Around 30% of respondents indicated that 10-year Treasury yields reaching 5% to 5.25% would be sufficient to trigger a 10% decline in stocks from their peak—the definition of a market correction. Another 22% placed the threshold slightly higher, between 5.25% and 5.5%.
The benchmark 10-year yield climbed to over 4.96%, marking a