The Financial Post reports in its Wednesday edition that this year's U.S. stock market rally is strong enough to withstand another leg higher for bond yields, says a Bloomberg survey. A Bloomberg dispatch to the Post reports that with the soft-landing narrative for the U.S. economy gaining traction, the majority of 331 respondents expect losses for the S&P 500 index to be contained to less than 10 per cent should yields on the 10-year Treasury resume its climb and hit 4.5 per cent. That would allow the U.S. equity benchmark to hold on to some of its year-to-date gain of 18 per cent. Edentree Investment's Christopher Hiorns says: "If we get higher interest rates and bond yields, it will probably be because the macro economy surprises on the upside. So equities, providing protection against inflation, may not be such a bad place compared to bonds." Yields on the 10-year note reached a 16-year high of 4.36 per cent in August as a resilient U.S. economy has investors betting interest rates will remain elevated. The jump in yields made August the worst month for the S&P 500 since February, though the index is at much higher level than during prior periods when yields were as elevated as they are now.