Bond yields are approaching a key level that could potentially disrupt the equities rally, according to Morgan Stanley strategists.
“We view 4.35% on the 10-year US Treasury yield as an important technical level to watch for signs that rate sensitivity may increase for equities,” a team led by Michael Wilson wrote in a note. The yield is currently trading around 4.30%.
US equities have been rallying on optimism about better-than-expected economic growth and developments about artificial intelligence. Investors are also looking to this week’s Federal Reserve meeting for confirmation that interest rates are set to be lowered.
“Stocks are now trying to move past their dependence on central bank policy,” Wilson said. “This week’s Fed and BOJ meetings will be important tests to see if that trend holds.”
Against the backdrop of strong job growth and a jump in prices in January and February, Fed officials have repeatedly emphasized they’re in no rush to ease. Most economists surveyed by Bloomberg News expect the policymakers to pencil in three cuts for 2024, with the first move coming in June, though more than a third expect a hawkish surprise of fewer reductions.
Copyright Bloomberg News
Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.
Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.
It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.
Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.
Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
