The US consumer will slow down as real disposable income growth nears zero and fiscal support fades, threatening equity markets despite strong first-quarter earnings driven by artificial intelligence, according to Bhanu Baweja, chief strategist at UBS Group AG.
Long-end bond yields have risen dramatically in the past few sessions, with the 30-year Treasury yield rising to levels last seen in 2007. Speaking to Bloomberg Television on Wednesday, Baweja warned this rise reflects strong nominal growth in the US rather than inflation concerns, with real yields driving much of the backup — especially at the long end of the curve.