5% is New 4% in Era of Higher Yields, Says Guneet Dhingra

• Overseas demand for US bonds is shifting from traditional yield-watchers to more price-sensitive financial centers, making the bond market vulnerable.
• The 30-year US Treasury yield has broken through 4% and 5% with no clear anchor, indicating a potential move 'well above 5%'.
• A strong economy means the Fed is unlikely to lower rates, and higher bond yields could serve as an effective hedge for equity gains.

Guneet Dhingra discusses the shift towards a new era of higher bond yields, stating that 5% is the new 4% for 30-year yields, with potential to go even higher. He highlights the vulnerability of the bond market due to changes in overseas demand and strong economic fundamentals, suggesting that higher yields could act as a hedge for equity rallies.