A Goldman Sachs strategist said corporate earnings are for now keeping the stock market stable, but warned that US equities could come under pressure if the selloff in US Treasuries picks up speed, according to 华尔街见闻.
The strategist's caution arrives as Treasury yields sit at multi-decade highs. CCTV reported that the 10-year US Treasury yield briefly climbed past 5.27%. Sina Finance noted that overall US Treasury yields have reached a 20-year peak.
Coverage elsewhere points to crowded positioning in the same market. 华尔街见闻 reported that bets against US Treasuries have clustered, and that a single weak data point could be enough to trigger a short squeeze.
The strategist's framing ties the two markets together: earnings have provided near-term support for stocks, but that support could be tested if the bond selloff accelerates.
What to watch next: whether Treasury yields keep rising and how upcoming economic data affect the crowded short positioning in US government debt.
