Austenitc stainless steels (normally non-magnetic) are very prone to fretting and galling when in contact with like material, which I'd of thought might be an issue in a knife edge arrangement.
For that reason as much as stress levels, I'd suggest looking at a hardenable stainless, or maybe one of the fancy surface treatments available.
I know very little about guitars, so can't comment on your original question regarding stress level and material choice.
Edited By David Jupp on 13/05/2015 11:56:57