Do rising yields spell the death knell of equities?

SINGAPORE (Feb 22): Investors shouldn't worry that a faster pace of rate hikes by the US Fed will drive up yields which could then negatively impact stock markets, says Bank of Singapore.

The current equities correction is closely linked with heightened inflation expectations, which also drove a surge in the US 10-year Treasury yield from 2.4% to 2.9% year to date.

The fear is that this in turn could impact accommodative financial conditions that have been supportive of the market so far.

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