How high does the yield have to get on the ten year bond before it stifles growth ?

[DemocratSinceBirth]

Thank you in advance.

[unblock]

1. i don't see it having much of an effect for a while.

there are a number of big multinational who have a ton of cash, they're not adversely affected by borrowing costs much at all. if anything, higher borrowing costs make it more challenging for smaller competitors and therefore presents the bigger companies with competitive or merger opportunities.

smaller companies will be adversely affected, but borrowing costs are still low by historical standards, so i don't expect it to present much of a drag any time soon.

the fed is taking a very cautious approach to upping rates (granted that's at the short end), so i'm not expecting any drastic negative effects on the economy. only a total hike of 0.75% is projected for 2018.

what the economy will look like in 2019 is more troubling. we keep pushing our luck avoiding the inevitable recession....

[still_one]

2. While some of it will depend on the employment picture, I think if the 10 year gets to 5%, maybe

even 4%, you will start to see a definite slow down in housing, autos, and other big ticket items, and that will filter down to the companies that supply materials and parts for those industries