Hard for Fed to rely on bond market due to U.S. Treasury intervention: Man Group's Kristina Hooper

• Rising U.S. Treasury yields are attributed to fiscal unsustainability (war costs, growing budget deficit) and reduced foreign investor demand, diminishing their safe haven perception.
• Continued high yields are expected to exert downward pressure on equities, especially long-duration technology and AI stocks, due to concerns about justifying high valuations.
• The potential for less transparency from the Federal Reserve, as suggested by Kevin Warsh's vision, creates additional uncertainty for market participants.

Kristina Hooper discusses the factors driving rising U.S. Treasury yields, including fiscal unsustainability and foreign investor reluctance, which diminishes Treasuries' safe haven status. She anticipates continued upward pressure on long-end yields, leading to downward pressure on long-duration equities, particularly technology and AI. The Fed's potential shift towards less transparency also adds to market uncertainty.