No. of Recommendations: 7
30-year Treasury yield hits highest level since 2004 as bond market rout continues
Thursday’s moves build on a U.S. Treasury rout that took place Wednesday. The 10-year Treasury yield had its biggest one-day jump since April 7, 2025 as traders reacted to stronger-than-expected U.S. economic data, hawkish commentary from a Federal Reserve official and high oil prices.
“The combination of fiscal, economic, geopolitical, and supply-side inflation pressures converging has bond markets in less familiar territory. The recent rise in yields can no longer be attributed simply to concerns over the deficit,” said from Mike Sanders, head of fixed income at Madison Investments.
Global bonds also sold off. Japan’s 10-year JGB yield rose its highest since August 1996. U.K. Gilts and German Bunds also moved higher, with yields on various European bonds hitting fresh multi-year highs.cnbc.com - US treasury yields bonds fed inflationSome commentary by Wendy, on the Fool.
All METARs are probably familiar with the history of stock market bubbles that are popped by forced selling of leveraged share holders when prices drop.
That’s not as common in the bond market but it may be happening now. The Macroeconomic impacts of forced bond selling - which pushes up interest rates - is far larger than stock market moves since bond yields impact business, household, mortgage and government spending.discussion.fool.com - Forced bond selling by tradersMaybe the mechanism is complicated. Maybe it is as simple as running the US like a banana republic has consequences. I have suggested before, that the entire "supply side economic miracle" of the last 40 years is fake, floated on an ocean of debt. Then the US elects a bellowing, blustering, fool POTUS, and the confidence game that supports all the debt implodes.
Steve
