There is a point where the back up in yield start to hurt equities, as the premium shifts.
What is that level.
Societe Generale – on 10 years Treasury Bond vs SP 500 – says it is approximately
Yield level 2.6%
The 11/11/16 we were at US Treasuries 2.15%
The 28/11 it was 2.31%
The 1/12 it was 2.45%
The Fed will pay very attention to this also because the same data around the world went lower – so it is easy to see a further strengthening of the USD.
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