The was at 2.81 percent from a high of 2.88 percent earlier in the day and the rising yields had started the stock market spiral lower.
"I think it's healthy in a way". He expects a sharp and swift correction but does not see the stock market heading into a bear market, which would be a 20 percent decline.
There's a not-so-quiet rebellion going on in the bond market, and it threatens to take 10-year yields above 3 percent much faster than expected just a few weeks ago.
Euro zone yields were also higher while a hawkish comment from the Bank of England regarding interest rates drove down United Kingdom stocks about 1 percent and boosted yields on United Kingdom government bonds to the highest since 2015.
"This is how we started, go back to Friday and this is exactly where we were", said Art Hogan, chief market strategist at B. Riley FBR in NY.
"Interest rates are moving higher", NPR's John Ydstie says.
Rising U.S. debt issuance is expected to weigh on bond prices in coming months.
Wall Street is pointing towards a weaker session, with USA stock futures down a quarter percent and investors seeing the potential for higher inflation and borrowing costs.
"To the extent that involves higher yields, chances are it would also bring back lower utility stock valuations".
"You don't want to move too much too soon", Ms Coupe said.
In the U.S., recent economic data, including Friday's wage growth and inflation, has been positive. "Be careful what you wish for".
The first chart below compares the five-year government of Canada bond yield with the S&P/TSX utilities index.
The yield on 10-year Treasuries rose three basis points to 2.87 percent, the highest in about four years. "As it approaches 3 per cent, concerns about inflation and competition for stocks by fixed income securities are increasing".
At prevailing bond yield of 7.56 per cent, one would then require 13.56 per cent (adding 6 per cent risk premium) on equity to make a switch from bonds.
Kotak Institutional Equities in a recent note suggested that the market was overlooking the rising yield on some "misguided view" about earnings and macro-economic factors being less relevant to the equity market against ample global liquidity. His promises for big corporate tax cuts helped lift the Dow more than 8,000 points, though it has since given back about a fifth of that surge. Almost 80 per cent of companies that have reported so far this earnings season have suprised analysts to the upside. The latest inflation figures are anemic at 1.7 per cent.
Ken Mahoney, president of Mahoney Asset Management, said he has been hearing from clients this week who were surprised by the struggles for bonds.
Jim O'Neill, Former Commerce Secretary in the United Kingdom government, on Monday said the USA is growing and the central bank may need to tighten monetary policy faster than the market has perceived. And the Fed may hesitate to come to the rescue. The dovish policymaker reiterated his argument that the central bank can afford to hold off further rate hikes until the middle of the year.
By contrast, the utility sector's price-to-earnings ratio of 18 has been bloated by another year of stellar gains for Wall Street, trimmed only slightly by three days of dramatic falls.
"Though never any fun to endure", it said, "pullbacks are a normal course for long-term investing". "However, the selling pressure unmasked a variety of issues, including investor complacency and the difficulty of unwinding crowded and complex trades involving leverage, or borrowed money".