Yardeni Says Bull Market Can Withstand Bond Selloff, Warns on 10-Year Yield Above 5%
Summary
- Yardeni Research said the bond selloff triggered by a sharp rise in US Treasury yields is not enough to threaten the stock bull market.
- Yardeni Research said a pullback in stocks could present a buying opportunity, and described the current backdrop as a resilient economy grappling with a short-term inflation problem.
- Yardeni Research said it kept its S&P 500 index target at 8,250, while adding that it could turn cautious if the 10-year Treasury yield rises above 5%%.
Forecast Trend Report by Period
A sharp rise in US Treasury yields is unlikely to threaten the stock market bull run, according to Yardeni Research.
Walter Bloomberg reported on May 20 that Yardeni Research said in a report released that day that the bond selloff sparked by rising Treasury yields is not severe enough to derail the equity rally. The firm added that any pullback in stocks could present a buying opportunity.
Yardeni Research said the recent surge in Treasury yields reflects improving economic strength rather than systemic risk. It described the current backdrop as a resilient economy dealing with a short-term inflation problem, not stagflation.
The yield on the 30-year US Treasury recently climbed to 5.19%, while the 10-year yield rose to 4.69%. Strong US economic data and hotter-than-expected inflation readings helped drive yields higher.
Yardeni Research maintained its S&P 500 target at 8,250. The firm said it could turn more cautious if the 10-year Treasury yield rises above 5%.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
