The sharp rise in US Treasury yields is emerging as a growing source of risk for equities, with pressure in the government bond market beginning to spread into credit markets, according to Jefferies’ latest Greed & Fear report. The brokerage said the increase in borrowing costs has become particularly important for stocks as expectations of a more hawkish Federal Reserve gain traction. The combination of elevated yields, greater credit-market volatility and uncertainty around the durability of AI-driven corporate spending could create additional challenges for the equity market.
