JP Morgan's global head of investment strategy Grace Peters said rising bond
yields are a key risk to global equities. She still expects further upside for
US and European stocks this year but warned a 5–8% pullback is possible as US
midterms approach in November, calling it a healthy correction rather than
structural strain. Markets fear oil-driven inflation could push the 10-year UST
yield to around 4.8% and toward the 5% threshold seen as adverse for equities;
the 30-year yield is at a 19-year high. Traders increasingly price that
policymakers may be forced to tighten further, which could push yields back
toward levels seen before US Treasury Secretary Bessent expanded buyback
operations to curb long-term borrowing costs.
