RBC’s Calvasina Says 5% Yield Would Challenge US Stock Bulls

Bullish calls on US stocks will be challenged if benchmark Treasury yields hit 5%, a level that usually depresses price-to-earnings ratios, according to Lori Calvasina, head of US equity strategy at RBC Capital Markets LLC.

The 5% level on the US 10-year yield — compared with about 4.54% on Friday — “seems to spook people,” Calvasina told Bloomberg Television.