[Societe Generale believes that the 10-year U.S. Treasury yield of 5.5% is the critical point when U.S. stocks begin to be affected] On September 7, Alain Bokobza, head of global asset allocation at Société Générale, said that the 10-year U.S. Treasury bond yield reaching 5.5% may be the critical point when rising borrowing costs begin to overwhelm earnings growth, thereby putting pressure on U.S. stock valuations. Bokobza pointed out that global corporate profit expectations have been significantly raised this year, so even if bond yields rise, the equity risk premium has not collapsed significantly. When the U.S. cash bond market was closed for the Labor Day holiday on Monday, the 10-year U.S. Treasury yield was about 4.78%. "Stocks are no more expensive now than they were at the beginning of the year," he said. However, he warned that once the 10-year U.S. Treasury yield rises to 5.5%, the increase in earnings expectations will not be enough to continue to support current valuations, which is the level at which "U.S. stocks start to take a hit."