- 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.
For further details see:
The Effect Interest Rates Can Have On Equity Sectors, Indices, And Commodities