Barclays recommends that investors reduce risk in the stock market on a sector-by-sector basis during September, amid concerns that the 10-year US Treasury yield, which has surged to 4.8% and is nearing 5%, will pressure the market. Emmanuel Cau, Barclays' head of European equity strategy, told Bloomberg Television that it is difficult for stocks to continue rising if the bond market remains unstable, and there are sufficient reasons to lower beta or exposure to assets sensitive to volatility. Other pressures include the statistic that September has been the worst month for the S&P 500 in 25 years, the US midterm elections, and large AI company IPOs that could drain liquidity from the market. If upcoming US inflation and employment data are weak, stocks may still have room to rise, but if the numbers come in hotter than expected, concerns will grow, especially if bond yields hit 5%.
Barclays PLCBarclays advises reducing risk in September as bond yields near 5%, but this is a market-strategy call, not a company-specific development.
