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The rate environment is back at the center of the macro conversation.
Santoli's piece asks why bond yields are commanding so much attention right now, and the answer it reaches for sits in the textbooks: real yields at a cycle high are supposed to act as a restraint on economic growth and equity valuations.
The logic runs through the discount rate. Higher real yields raise the hurdle for capital allocation across the economy. For equity markets, the present value of future earnings compresses when that hurdle rises.
For the broader growth picture, the cost of borrowing weighs on business and consumer spending decisions alike. What Santoli is pointing to is the moment when that framework meets the current rate environment.
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