Express News | The Yield on the U.S. 30-Year Treasury Bond Rose to 5%, Marking Its Highest Level Since November 2023
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Bank of America stated that only "Goldilocks" data can keep long-term interest rates below 5%, stabilize interest rate sensitivity, and prevent the Nasdaq's leadership from wavering. "Explosive" data could lead to a decline of about 4% in the S&P 500 Index to 5,666 points.
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AI has triggered a wave of layoffs on Wall Street! The number of unemployed individuals in the next three years may exceed 200,000.
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Krugman: Is the crazy nature of U.S. debt due to the market believing that Trump will go insane?
Krugman proposed that the rise in long-term interest rates, such as the 10-year U.S. Treasury yield, may reflect a terrifying, quietly spreading doubt that Trump actually believes the crazy things he says about economic policy and might put them into practice.
The Global bond market is experiencing a frantic sell-off, with US Treasury yields quickly approaching 5%.
The 20-year US Treasury yield has already broken through 5%, while the UK 10-Year Treasury Notes Yield has also risen to 4.82%, reaching a new high since 2008. Inflation worries have prompted traders to lower their expectations for interest rate cuts by the Federal Reserve and the Bank of England this year, and at the same time, the market is weighing the impact of President Trump's policies.
The last time the US bonds dropped like this, the US stock market also crashed.
Recently, the rise of the 10-year U.S. Treasury yield is similar to the situation in 2022 and 2023, when the stock market experienced a substantial decline. Goldman Sachs stated that although the U.S. stock market is relatively stable now, the correlation between stock and bond yields has turned negative. If economic data falls short of expectations, the risk of a market correction in the short term may increase.
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