BofA's Savita Subramanian dismisses Treasury yield jump as non-threatening to equities

The recent jump in Treasury yields is not a negative sign for equities, according to BofA Securities' Savita Subramanian. She sees it as a positive signal, indicating that companies are focusing on efficiency and productivity rather than relying on leverage and cheap financing. Subramanian believes that productivity will drive the next phase of the bull market and has a positive outlook on stocks. She suggests that industrials, energy, and financials are sectors that can withstand higher interest rates due to their improved discipline and lean operations. While she expects some volatility, Subramanian believes there is visibility in the Fed's actions and room for easing in the next downturn.