But the banks that hold those loans would be a liability
Making Sense of the Shock from a 5% Treasury Yield
Probably not, in part because household and corporate balance sheets remain in good health," Ed Al-Hussainy, strategist at Columbia Threadneedle Investment, told Barron's."I would not expect aggregate consumption to weaken until we see higher unemployment first," he added.And that's where the 5% boogeyman makes the difference. The effect of higher yields is seen in changing decisions: fewer people financing that car, fewer going for that Masters degree, fewer companies financing big growth initiatives, and some even shutting down funding for ongoing operations. Over time, higher Treasury yields affect the labor market and push lawmakers to make difficult choi
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