Yahoo Finance22 Aug, 16:00finance.yahoo.com

Mohamed El-Erian says 30-year Treasury yield at 5.27% signals a structural shift that will make America more expensive

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A sustained elevation in long-term Treasury yields raises borrowing costs across the economy, pressuring companies and sectors sensitive to capital costs and consumer credit demand.

Headwind (4)

Lennar CorporationLENknock-onHigher mortgage rates reduce home demand and pricing power for the largest US homebuilder.
D.R. HortonDHIknock-onElevated long-term rates reduce affordability and buyer demand for the largest US residential builder.
Toll BrothersTOLknock-onHigher mortgage rates reduce demand for luxury homes and compress builder margins.
AmazonAMZNknock-onHigher discount rates increase cost of capital and reduce present value of future cash flows in a structural higher-rate regime.

Sectors

US homebuilders
Commercial real estate
Consumer discretionary retail

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