<p>It’s a strong start for US equities today with the index up 1.0% and on track for the third weekly gain in a row. </p><p>Right now stocks are rising alongside yields as banking worries fade, but there may be a limit. US 2s are up to 4.10% compared to 5% just before the bank rout. I think stock shouldn’t have too much trouble staying bid on better risk appetite up to 4.50% but beyond that we might need to contemplate a more-aggressive Fed once again. Some of that will depend on how inflation data unfolds but if the economy can cruise through this episode then it might be an indication that it’s running hotter than believed.</p>
This article was written by Adam Button at www.forexlive.com.
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