Good morning. Stocks vs bonds, an overhaul in Ukraine’s defense ministry and oil extends its rally. Here’s what people are talking about.
This year’s US stock market rally is strong enough to withstand another leg higher for bond yields, according to the latest Markets Live Pulse survey. With the soft-landing narrative for the world’s biggest economy gaining traction, the majority of 331 respondents expect losses for S&P 500 Index to be contained to less than 10% should yields on the 10-year Treasury resume their climb and hit 4.5%. Separately, some of the world’s largest bond investors are betting that the tightening cycle is finally ending in the US with cracks showing in the labor market.