The 10-year Treasury's climbing yield is approaching 3 percent, a threshold many analysts pinpoint as the "danger zone" where costlier credit drags stock prices, CBS Money Watch reports.
Here are three things to know about the climbing rates.
1. Higher interest rates can result in lower consumer financing and spending, as well as a retreat of corporate debt-funded buybacks.
2. Analysts from Credit Suisse said a 10-year Treasury yield of 3.5 percent is the turning point, CBS reports. Those analysts said while stocks historically aren't as sensitive as the danger zone nears, losses climb quickly once the threshold is crossed.
3. The market may turn down to test recent lows and see how Federal Reserve Chairman Jerome Powell will react. If Mr. Powell doesn't take the gas off increasing hawkishness from the federal reserve, stock market losses may grow as interest rates rise and bond price decreases accelerate.
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