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U.S. stocks appear sensitive to interest rates when the yield on the 10-year Treasury note rises above 4.5%, according to Morgan Stanley. After climbing in May, the yield on the 10-year
Treasury note was rising Monday morning by about 5 basis points to around 4.44%, FactSet data show, at last check. The 10-year Treasury rate rose 24.5 basis points in May for its biggest
monthly jump since December based on 3 p.m. Eastern time levels, according to Dow Jones Market Data. “Should the 10-year yield sustainably push above 4.5%," the stock market may correct
"modestly" over the short term, Morgan Stanley chief U.S. equity strategist Michael Wilson said in a research note Monday. “Mid-single-digit percent compression in index level
multiples has been typical in these initial breaks above 4.5%.”