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Rising bond yields raise pressure on overextended equities

The reports argue that higher yields are spilling into broader asset valuations, not just fixed income.

Reported · Written up by our desk · Inflation

MarketWatch argues that the bond market is poised to strain the stock market as rising yields put pressure on risk assets. The outlet frames the concern around valuation risk, saying higher interest rates can undermine parts of the equity market that have become overextended.

MarketWatch also links the move to a wider transmission effect, where yield increases weigh on everything from expectations for future growth to the relative attractiveness of stocks versus bonds.

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