Alain Bokobza: The 10-year US Treasury yield of 5.5% is the critical point for stock market valuation

Alain Bokebza, Global Head of Asset Allocation at Societe Generale, stated that the 5.5% yield on 10-year US Treasury bonds is the critical point at which a profit increase is no longer sufficient to support valuations, and higher borrowing costs will put pressure on stock valuations. Grace Peters from JPMorgan Chase stated that a 10-year US Treasury yield of 5% has significant psychological implications. Emmanuel Cau of Barclays believes that rising to 5% will make investors more concerned about the impact on the stock market.