Societe Generale’s Bokobza warns 6% Treasury yield could pressure equities

There is a number in bond markets that equity investors should be watching very carefully. According to Alain Bokobza, head of global asset allocation at Societe Generale, that number is 5%, and the one beyond it that should genuinely concern investors is 6%. Bokobza’s argument is straightforward: once Treasury yields climb high enough, the cost of borrowing stops being a nuisance and starts being a ceiling. Corporate earnings growth, however resilient it might look on paper, cannot outrun financing costs indefinitely. Where the math starts breaking down The 5% mark on the 10-year Treasury is where Bokobza flags that higher borrowing costs begin to outweigh earnings growth, creating genuine downward pressure on equity valuations. The 6% level represents something more severe: a threshold where the pressure moves from marginal to structural. Strategists more broadly have been treating the 4.8% and 5% zones as points where asset spillover risks escalate. In that framing, Bokobza’s 6% warning sits at the far end of a zone that markets are not yet pricing as a base case, but can no longer fully dismiss. Current 10-year Treasury yields have been trading around 4.1%, though near-term mar...