BlackRock CIO Rick Rieder is cutting equity holdings, favoring high-grade bonds yielding 7% to 8% over stocks amid rising Treasury yields and a freezing housing market.
The 30-year fixed US mortgage rate has risen to 7.45%, driven by a wider US government bond selloff. This surge in Treasury yields increases the opportunity cost of holding Bitcoin, impacting the broader cryptocurrency market.
Despite a nearly flat close for the S&P 500, underlying market internals revealed a widespread pullback masked by a few top performers like Meta, alongside rising Treasury yields and banking sector pressure.
Fundstrat's Tom Lee argues that rising Treasury yields act as a market filter, separating strong, well-funded companies from weaker competitors rather than threatening all equities equally.
Bitcoin dropped below $84,000 following a surprise jump in US business activity that sent Treasury yields to a 19-year high and raised expectations for further Federal Reserve rate hikes.
