Wood said the US 10-year Treasury yield is more important for financial markets than the federal funds rate and compared its levels to a traffic light.
“Breaking 4 and a half% for the US 10-year was equivalent of a yellow warning light going on.
A comprehensive breakthrough 5% was like a red signal,” he said, adding that further rises in yields would be negative for equities.
Wood said the US 10-year Treasury yield is more important for financial markets than the federal funds rate and compared its levels to a traffic light. “Breaking 4 and a half% for the US 10-year was equivalent of a yellow warning light going on. A comprehensive breakthrough 5% was like a red signal,” he said, adding that further rises in yields would be negative for equities.
