Tom Lee Warns 6% 10-Year Treasury Yield Would Put ‘Enormous Pressure’ on Equities

A 6% yield on the 10-year U.S. Treasury note would pose significant risks to equity market performance, according to Fundstrat's Tom Lee, as higher risk-free returns intensify competition for capital.
Lee highlighted critical threshold levels where rising yields increasingly challenge equities:
- A 5% yield on the 10-year Treasury already creates discomfort for stock markets.
- At 6%, Treasury debt would become much more competitive relative to equity returns.
- Reaching that yield level would exert substantial downward pressure on equity valuations.