- Bank of America’s Hartnett anticipates economic challenges due to rising Treasury yields.
- Hartnett warns of potential U.S. equity disruptions.
- A 5% Treasury yield seen as destructive to U.S. economy.
Michael Hartnett, Bank of America’s Chief Investment Strategist, cautions about the economic impact of U.S. Treasury yields exceeding 5% in his latest report.
Rising Treasury yields could destabilize U.S. equities, warns Hartnett. Dollar weakness and high yields may hit financial markets.
U.S. Economy Faces Risk from 5% Treasury Yields
Michael Hartnett’s report cautions that the U.S. economy may face headwinds due to rising 30-year Treasury yields going beyond 5%. The economic environment includes significant government spending. Hartnett suggests such a situation combined with the “Big Beautiful Bill” could “break the budget.” International equities and bonds have performed better while U.S. stocks lag.
The U.S. stock market has seen volatility, with tech stocks facing a $6.8 billion outflow. Concurrently, cryptocurrency markets have experienced a record $2.3 billion inflow. Hartnett stresses that emerging economic policy misalignments can increase market vulnerabilities.
“U.S. equities are likely to face disruption in the current economic climate.” — Michael Hartnett, Chief Investment Strategist, Bank of America Global Research (InvestmentNews)
Cryptocurrencies Gain as Treasury Yields Shape Investment Sectors
Did you know? Hartnett’s “BIG strategy,” focusing on bonds, international stocks, and gold, has outperformed in 2025, with gold rising 25%. This success contrasts sharply with U.S. stock market challenges.
Ethereum’s current trading price is $2,583.49, with a 24-hour trade volume of $17.21 billion, reflecting a 16.02% change. The cryptocurrency has seen a 43.32% increase over 30 days, as per CoinMarketCap. Its market cap stands at $311.89 billion, maintaining a market dominance of 9.10%. The cryptocurrency’s price trend over 90 days is up 3.52%.
Insights from Coincu suggest heightened U.S. Treasury yields could pressure financial sectors, potentially influencing cryptocurrency investments. Ethereum’s resilience with substantial gains indicates shifting investor sentiments towards more digital-assets amid broader economic uncertainty.
Source: https://coincu.com/340030-bank-america-economic-challenges-treasury-yields/