VPU - The Effect Interest Rates Can Have On Equity Sectors Indices And Commodities

• After reaching almost 180 basis points [bps] (1.80%) in March of this year, the 10-year Treasury yield is now hovering around 118 bps.
• Because of the volatility surrounding interest rates over the past 18 months, I wanted to conduct a sensitivity study between the 10-year yield and different sectors, indices, and commodities.
• Currently, with a high correlation between stocks and bonds relative to history, bonds in totality might not represent a good hedge for systematic equity risk.

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