Rising Treasury yields could hurt the long-term performance of US stocks.

With U.S. Treasury yields on the rise, the allure of bonds is steadily increasing compared to stocks. This development is causing the ongoing decline in equity markets to worsen, and it also poses a long-term threat to equity performance. As Treasury yields soar, investors are increasingly attracted to the stability and steady income offered by bonds, which are considered a safer investment option. This shift in investor sentiment is exacerbating the current equity selloff, as more and more investors flock towards bonds, leaving fewer buyers for stocks. The rise in Treasury yields not only weakens the immediate performance of equities but also has the potential to dampen their long-term growth prospects.

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