Invesco: If U.S. Treasury yields continue to climb, the risk of stock market pressure over the next 12 months should not be overlooked.

Jackson, Invesco's Head of Global Asset Allocation Research, has a model showing that if the 12-month average of the 10-year U.S. Treasury yield rises to 4.72% and continues climbing, global equities could turn lower. That average currently sits at about 4.34%, still some distance from the model's threshold; but he has already modestly trimmed equities in favor of government bonds, and warns that if yields keep rising, the risk of equity market pressure over the next 12 months should not be ignored.