SocGen: 5.5% 10Y yield is tipping point for stocks

TREE NEWS reports: Societe Generale’s global asset allocation head Alain Bokobza said a 10-year Treasury yield of 5.5% would mark the tipping point where higher borrowing costs overwhelm earnings growth and pressure equity valuations. He noted that global earnings estimates have been revised up sharply this year, so equity risk premiums haven’t collapsed despite rising yields. With cash bond markets closed for Labor Day, the 10-year yield was around 4.78% on Monday.