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26th March 2021

Columbia Threadneedle: Relationships are not easy: US equities versus Treasuries

As the economy recovers and cyclical stocks begin to outperform, how should we think about the connection between equities and US Treasury yields?
A recent rapid increase in US Treasury yields has unsettled equity markets, and to understand this short-term volatility we need to look back to the fourth quarter of 2020. During this time, sector leadership in the market shifted quite dramatically from specific product and service growth-oriented companies to those that benefit from a revival in broader economic activity – cyclical industries such as energy, industrials, metals and mining.
 

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Investment Commentary, Investments, US

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