Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 29, 2024.
The volatility in the bond market has had equity investors on their toes for months, but at what point will rising yields spoil stocks' 2024 rally?
The answer is 5% on the 10-year Treasury yield , according to Goldman Sachs .
In a new 19-page paper using market data since the 1980s, the Wall Street firm said when that threshold is reached, the correlation between bond yields and stocks turns negative.
The benchmark 10-year yield jumped 5 basis points Tuesday to 4.67% after data showed employee compensation costs increased more than expected to start the year.
Persons:
Goldman Sachs, Goldman, Peter Oppenheimer
Organizations:
New York Stock Exchange, Treasury, Federal Reserve
Locations:
New York City, U.S