US 10-year treasury yield extend rally to 40-month high

US 10-year yield continues its ascent in Europe. The benchmark yield rose to 2.642 percent; the highest level since September 2014. 

Bond King Jeff Gundlach had warned earlier this month that equity markets could feel the heat of rising yields, once the 10-year yield moves above 2.63 percent. 

With the yield at 2.64 percent, it will be interesting to see whether equities turn risk-averse. As of writing, S&P 500 futures are flatlined at 2797 levels.