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Wall Street Veteran Warns Surging Bond Yields Will Impact The Market

Predictions say yields will cost the stock market roughly 8 percent

The stock market will not be able to weather the one-two punch of rising bond yields and increasing concerns about a more aggressive path for Federal Reserve interest rate hikes, the chief strategist at Sandler O'Neill told CNBC on Oct. 9, 2018.

"There's probably a correction coming in the [stock] market, maybe in the vicinity of 8 percent," because as yields and rates go higher equity values decline, Robert Albertson, who has decades of experience on Wall Street, said in a Squawk Box interview. "I kind of start from there when I'm looking for a place to invest in, certainly within the financial sector."

The 10-year Treasury yield on Tuesday resumed last week's march higher, rising above 3.25 percent in early trading and reaching fresh seven-year highs, before slipping. Bond trading was closed for Columbus Day on Monday.

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