By Dean Brooke, Rogue Economics
The following chart is taken from Société Générale’s research into the sensitivity of US equities to a higher interest rate environment conducted in 2018.
Specifically, with respect to the rate on US government treasuries and how it affects equity markets.
Here are the notes from SocGen’s research, I’ll do my best to find an actual link to the source at a later date.
Fundamentally, Societe Generale research shows that the equity risk premium reduces exponentially for every 0.25% on the flagship 10year US treasury yield.
Categories: Economics/Class Relations