Stocks keep shrugging off rising Treasury yields. Here’s the level that could finally trigger a selloff.

The persistence of higher Treasury yields has yet to dent equity market enthusiasm, a dynamic that historically tends to fray as borrowing costs climb. The 10-year yield’s continued ascent is being absorbed by investors, who appear focused on economic strength rather than valuation pressure. This apparent indifference, however, may have a tipping point.

According to Strategas, equities can withstand meaningfully higher yields before genuine distress sets in. The firm’s analysis suggests the current climb remains well within a range that markets can digest. The cushion comes from the belief that the economy is growing strongly enough to justify higher rates, diminishing the immediate threat to corporate earnings. Still, the research identifies a specific threshold—one significantly above present levels—that could finally break the market’s composure.

The key for observers is not the daily drift in yields but their trajectory relative to that critical line. If the 10-year approaches the level flagged by Strategas, the calculus shifts from economic optimism to valuation concern. For now, the message is one of patience: until that line is tested, the correlation between bonds and stocks may remain unusually muted.