WS #14641
The bond market is repricing for a hotter, more resilient economy, with the 10-year Treasury yield hitting a 19-year high and 30-year mortgage rates surging past 7%. This hawkish macro backdrop is creating a divergence: while equities show resilience, the cost of capital is rising sharply, pressuring high-multiple growth and rate-sensitive sectors. The Treasury's announcement of a $6 billion buyback of 20-30 year debt is a liquidity measure that may temporarily cap yields but underscores the government's funding needs.
Treasury Yields and Macro Rates
The bond market is repricing for a hotter, more resilient economy, with the 10-year Treasury yield hitting a 19-year high and 30-year mortgage rates surging past 7%. This hawkish macro backdrop is creating a divergence: while equities show resilience, the cost of capital is rising sharply, pressuring high-multiple growth and rate-sensitive sectors. The Treasury's announcement of a $6 billion buyback of 20-30 year debt is a liquidity measure that may temporarily cap yields but underscores the government's funding needs.