Rally or Retreat? The 4.35% Yield Dilemma

4.35% matters

Morgan Stanley's Wilson: "While almost all of the equity market rally late last year was attributable to lower rates, stocks are now trying to move past their dependence on central bank policy. This week's Fed and BOJ meetings will be important tests to see if that trend holds. We view 4.35% on the 10-year US Treasury yield as an important technical level to watch for signs that rate sensitivity may increase for equities".