UBP says global equities stay resilient as US 10-year yield hits 19-year high at 5.22%
TLT•UBP said global equities remained resilient as the US 10-year Treasury yield reached 5.22%, a 19-year high. The MSCI ACWI total return rose 1%, while the Nasdaq 100 gained 3.3%.
1. Yields rise, equities advance
UBP flagged a surge in long-term yields, citing strong US data, firm energy prices and expectations of Fed rate hikes. Markets priced a 70% chance of an October hike. Global utilities fell 2.4% and real estate slipped 1.1% as rates pressured bond-proxy sectors. UBP highlighted US core PCE, expected to rise 0.3% month over month, and nonfarm payrolls, seen slowing to 90,000, as upcoming sentiment drivers.
