U.S. Treasurys are now firmly in the 'danger zone,' strategists say

SITREP: U.S. Treasurys are currently categorized as being in a 'danger zone' due to rising long-term yields. This situation raises concerns among strategists that persistent inflation may negatively impact equity markets. TACTICAL ASSESSMENT: The classification of U.S. Treasurys in a 'danger zone' suggests potential instability in financial markets, particularly if inflation continues to rise. This could lead to increased volatility in both bond and equity markets, affecting investor confidence. PROJECTED VECTORS: If inflation persists, we may see further increases in yields, prompting a sell-off in equities as investors reassess risk.