Surging bond yields to test stock bulls’ mettle

Original article by David Rogers
The Australian – Page: 30 : 18-May-18

The yield on US 10-year government bonds peaked at a new seven-year high of 3.12 per cent in Asian trading on 17 May. Given the low level of sharemarket volatility at present, there is the potential for a correction, as was the case in February when the bond yield rose to 2.9 per cent. A growing number of market watchers are advising investors to retain overweight positions with regard to equities in the current environment, while Ric Deverell of Macquarie Group expects the 10-year bond yield to rise toward four per cent in the medium-term.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, STANDARD AND POOR’S 500 INDEX, UNITED STATES. FEDERAL RESERVE BOARD, MORGAN STANLEY AND COMPANY INCORPORATED, STANDARD AND POOR’S ASX 200 INDEX, TELSTRA CORPORATION LIMITED – ASX TLS, TREASURY WINE ESTATES LIMITED – ASX TWE, BRAMBLES LIMITED – ASX BXB, CSL LIMITED – ASX CSL, BLOOMBERG LP, EUROPEAN CENTRAL BANK

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