Brace For A 5% 10Y Yield, And A Major Stock Market Correction

Damir Tokic 14.72K Followers Follow Summary The 10Y Treasury yield is likely to exceed the 5% level as real rates and BE inflation both rise above the 2.5% level. The S&P500 has been largely ignoring the rising rates but a deep correction gets more likely as 10Y yield exceeds the 5% level. The Treasury buyback program is unlikely to cap the rise in long term yields. Getty Images The 10Y yield near the 5% level The 10Y Treasury Bond yield ( US10Y ) is currently at 4.84%, and it's approaching the 5% level. This is important, as in opinion, once the 10Y yield reaches and exceeds the 5% level, the S&P500 ( This article was written by Damir Tokic 14.72K Followers Follow Commodity Trading Adviser (CTA), member of National Futures Association. Professor of Finance, research on Global-macro issues. Editor-in-Chief, Journal of Corporate Accounting and Finance. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.