Momentum Global says US 10-year yield tops 5%, raising hurdle rate for risk assets
TLT•U.S. 10-year yield above 5% lifts hurdle rate for risk assets
- Momentum Global flagged a renewed macro shock as U.S. 10-year Treasury yields moved above 5%, the highest close in 19 years.
- Brent crude climbed toward USD 110 a barrel on Middle East supply-disruption risks, reviving concerns about more persistent inflation.
- Higher yields tightened financial conditions, pressuring technology valuations through a higher discount rate despite sustained AI infrastructure demand.
- Government bond prices fell as investors repriced the inflation and rate outlook following the Fed’s latest 0.25 percentage-point increase.
- The note framed the 5% Treasury yield as a higher hurdle rate, forcing risk assets to offer greater compensation for uncertainty.
