WS #14658
US 10-year Treasury yields have surged to 5.13%, a 19-year high, following strong PMI data and signs of persistent inflation. This has pushed market pricing for an October Fed rate hike to approximately 75%, causing a sharp repricing of risk assets. The bond market is showing extreme stress, with the 5-year auction seeing catastrophic results and high-yield bond ETFs hitting new 52-week lows, indicating a systemic liquidity tightening that pressures equities and crypto.
Treasury Yields and Macro Liquidity Shock
US 10-year Treasury yields have surged to 5.13%, a 19-year high, following strong PMI data and signs of persistent inflation. This has pushed market pricing for an October Fed rate hike to approximately 75%, causing a sharp repricing of risk assets. The bond market is showing extreme stress, with the 5-year auction seeing catastrophic results and high-yield bond ETFs hitting new 52-week lows, indicating a systemic liquidity tightening that pressures equities and crypto.