📝 Nominal Yields Approaching Negative Rates-Equity Correlation Levels: Barclays Strategy

Recent research showed that higher rates start becoming a headwind for equity prices only when 10y Treasury yields increase beyond 5%, i.e. rates-equity correlation (REC) switches from positive to negative. Importantly, we are quickly approaching the level of nominal rates which understandably makes equity investors nervous. - Barclays Derivatives Strategy