Ameriprise warns higher long-term Treasury yields may pressure equity valuations

• Ameriprise flagged rising long-dated Treasury yields as a potential equity valuation headwind, driven more by fiscal sustainability concerns than inflation.
• 30-year Treasury yield ended at 5.25%, highest close since 2007; 10-year auction cleared at 4.68%, highest since 2007.
• Heavy supply highlighted by USD 67 billion long-dated issuance, with investors demanding higher yields to absorb new debt.
• CBO outlook shows deficits near 6% of GDP; debt held by the public projected to rise from 101% of GDP in 2026 toward 118%-120%.
• Equities have largely looked through higher yields as earnings forecasts stay strong, with FactSet projecting 2026 EPS growth near 31%.
• Steeper yield curve seen supporting banks, insurers; utilities, REITs face tougher competition for capital as Treasury yields rise.
• Key market watchpoint set at keeping the 10-year Treasury yield below 5%; year-end forecast at 4.5%.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Ameriprise Financial Inc. published the original content used to generate this news brief on August 17, 2026, and is solely responsible for the information contained therein.