Stocks to Benefit if Interest Rates Break Out Higher

Bank of America has identified several stocks that could benefit from the recent climb in Treasury yields—a movement that has stirred both investor concerns and opportunities.

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Yields on U.S. Treasurys, particularly the 10-year and 30-year notes, have been trending upward. The 10-year yield is hovering near 4.43%, just below the critical 4.5% level, having risen from 4.01% in early April. Meanwhile, the 30-year Treasury is approaching 5%, another psychologically significant threshold, after increasing from 4.41% around the time former President Donald Trump announced sweeping new tariffs on imports.

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This uptick in yields is fueled by various factors, including ongoing fears over the strength of the U.S. economy, the rising federal debt load, and uncertainties surrounding the U.S. dollar’s outlook. Matters became even more complicated when the Court of International Trade recently invalidated most of Trump’s tariffs—a move the White House quickly appealed.

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The administration argued that unelected judges should not dictate the nation’s emergency response strategies. The very next day, a higher court put that ruling on hold, leaving the future of U.S. trade policy uncertain.

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Amid this backdrop, demand for Treasury securities has weakened, while investors have grown more interested in riskier assets. As markets search for direction, Bank of America analyzed which stocks tend to perform better when the 10-year Treasury yield rises. The bank studied monthly changes in the yield since 2014, comparing them to S&P 500 stock performances. Financial stocks dominated the results, claiming six of the top 10 spots in Bank of America’s analysis.

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The list includes names with a strong statistical correlation to increases in the 10-year yield. These stocks have historically outperformed when yields climb. Here are the companies that showed the strongest positive relationship with rising yields:

• Prudential Financial (PRU) – 48% correlation
• Raymond James Financial (RJF) – 44% correlation
• MetLife (MET) – 40% correlation
• Charles Schwab (SCHW) – 40% correlation
• Mosaic Company (MOS) – 39% correlation
• ConocoPhillips (COP) – 38% correlation
• Huntington Bancshares (HBAN) – 36% correlation
• EOG Resources (EOG) – 36% correlation
• JPMorgan Chase (JPM) – 35% correlation
• Halliburton (HAL) – 35% correlation

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Leading the pack is Prudential Financial, which boasts a nearly 50% correlation with yield changes. Despite being down over 12% in 2025, the insurance and retirement services company offers a generous dividend yield of 5.2%. Analyst sentiment is mostly neutral, with about two-thirds rating the stock a hold. Nevertheless, the average price target suggests a potential 9% upside. Notably, Prudential beat expectations in its most recent quarterly report, released in late April.

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Another prominent name on the list is JPMorgan Chase, which has posted a year-to-date gain of more than 10%—well ahead of the S&P 500’s modest rise of under 1%. The stock yields 2.1% and shows a 35% correlation with the 10-year yield. While CEO Jamie Dimon has issued warnings about a possible recession, JPMorgan’s recent financial results tell a different story. The bank outperformed Wall Street expectations in the first quarter, buoyed by robust performance from its trading operations.

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According to FactSet, around 59% of analysts rate JPMorgan Chase a buy. The consensus price target suggests the stock has room to climb a bit further, with over 3% upside projected.

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Two other names worth noting are Charles Schwab and MetLife, both of which have a 40% correlation with the 10-year yield. Schwab, a giant in brokerage and wealth management, stands to benefit from higher interest rates as it earns more from client cash balances. MetLife, a leading insurer, typically sees its investment income rise along with yields, boosting its bottom line.

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In addition, ConocoPhillips, which already has a reputation for delivering solid shareholder returns, and EOG Resources, another key player in energy exploration, both appear on the list. These companies also tend to benefit from a rising-rate environment, especially when higher yields reflect improved economic growth expectations.

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In short, while rising Treasury yields can spark volatility and anxiety across broader markets, they may present opportunities in specific sectors—particularly in financials and select energy names. Bank of America’s analysis helps zero in on stocks that have historically fared well under such conditions, offering investors a possible roadmap amid ongoing economic uncertainty.

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