MORGAN STANLEY: rising global bond yields push developed-market equity-bond
correlation near historical highs; historically when U.S. Treasury yields exceed
~4-5% and European government bond yields exceed ~3-3.5% higher yields start to
weigh on stock valuations; strong earnings may let risk assets tolerate higher
rates, but bond volatility is a medium-term risk and a larger driver of equity
valuations over 6-12 months.
