Why US recovery may be on verge of disintegration

The continued rise in US treasury yields has raised concerns the broader economic recovery may be under threat if the sell-off continues.

Fed chairman Ben Bernanke's suggestion that US QE could soon come to an end was based on a belief the domestic economy was starting to recover - but some have suggested his comments may set off a chain reaction which jeopardises that growth. Benchmark treasury yields hit a two-year high of close to 2.9% this week; that rise has inevitably fed through to prices which track bond movements, such as mortgage rates. Some, such as Threadneedle CIO Mark Burgess, have previously suggested rising yields could prompt buyers to bring purchases forward. But with the US consumer still the lynch...