Morgan Stanley Global Head of Investment Strategy: US Treasury yields approaching 5% could trigger a 5% to 8% pullback in global stock markets According to Bloomberg, Grace Peters, head of global investment strategy at JPMorgan Chase Private Bank, said that if the 10-year US Treasury yield rises to around 5%, it could trigger a 5% to 8% pullback in global stock markets, but more like a "healthy pullback" rather than a structural peak. At present, the yield of 10-year US Treasury bonds has risen to about 4.8%, and the yield of 30-year bonds has reached a new high in 19 years. The market is betting that policy makers may be forced to raise interest rates again. Peters pointed out that in the second quarter, corporate profits in the United States and Europe increased by about 30% and 15% respectively, which is difficult to sustain. However, the expansion of profits covers sectors such as finance, industry, and utilities, which is healthier than being driven solely by technology stocks. It maintains the core view of "capital expenditure supercycle driving profit supercycle" and is optimistic about the US and emerging market stock markets.