BOFA: U.S. TREASURY YIELDS MAY NEED TO HIT 6% TO DERAIL STOCK RALLY Bank of America's latest fund manager survey finds that 10-year Treasur…
BOFA: U.S. TREASURY YIELDS MAY NEED TO HIT 6% TO DERAIL STOCK RALLY
Bank of America's latest fund manager survey finds that 10-year Treasury yields would need to approach 6% before investors meaningfully shift money from stocks into bonds.
Key findings:
🔸 76% expect the Fed to hold rates steady in October.
🔸 Technology exposure is the highest since August 2020.
🔸 Consumer discretionary exposure is the lowest since July 2008.
🔸 Long semiconductors remains the most crowded trade.
🔸 Biggest market risks: A disorderly bond yield surge and an AI bubble.
Investors are reducing exposure to banks and U.S. stocks, while increasing allocations to bonds, utilities, Japan and the UK.
Bottom line: Equity sentiment remains resilient, but rising yields and AI-related risks are becoming major concerns.