Societe Generale warns US Treasury yields above 4.5% may hurt stocks
Societe Generale has identified a critical threshold for US Treasury yields at 4.5%, beyond which rising yields may negatively impact stock prices. The bank's model suggests that yields above this level create a competitive environment for investor capital, making bonds more attractive than stocks. With the 30-year Treasury yield surpassing 5%, concerns about equity market valuations are heightened, particularly for growth stocks reliant on future earnings.
- ▪Societe Generale warns that US Treasury yields above 4.5% may harm stock markets.
- ▪The 10-year Treasury yield recently crossed the 4.5% threshold, while the 30-year yield exceeded 5%.
- ▪Higher yields increase the discount rate on future corporate earnings, reducing their present value.
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Societe Generale warns US Treasury yields above 4.5% may hurt stocks The French bank's model identifies a threshold where rising bond yields flip from benign to destructive for equity markets. Share Add us on Google by Editorial Team May. 27, 2026 window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "01f21ccf-2092-46b1-9ac7-8c44cc782e0f"; sevioads_preferences[0].adType = "native"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences); There’s a number that keeps showing up in risk models on Wall Street, and it’s 4.5%.
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