If the 10-year U.S. Treasury yield hits 4.5 percent by year-end, the economy would probably muddle through-stocks, not so much, according to Goldman Sachs Group Inc. “A rise in rates to 4.5 percent by year-end would cause a 20 percent to 25 percent decline in equity prices,” the bank’s economist said. While a recent drop in stocks may have been fueled by concerns tied to the 10-year yield approaching 3 percent, many strategists have said they felt equities could continue to rise until reaching 3.5 percent or 4 percent. A 20 percent to 25 percent drop in stocks, as measured from the S&P 500’s Jan. 26 peak close of 2,872.87, would take the gauge to a range of approximately 2,155-2,298.

Source: BloombergTv.mn