U.S. bond yields are on the rise, offering a potential threat to the stock market. But if a 2.8 per cent yield on the 10-year Treasury bond is a source of concern, what about a noticeably higher yield?
Brian Belski, the chief investment strategist at BMO Nesbitt Burns, believes the yield could rise as high as 4.5 per cent over the next several quarters. However, he believes that higher interest rates aren’t necessarily a bad thing for stocks. In fact, they could be good.