WS #14659
The US 10-Year Treasury yield has spiked to a 19-year high of 5.13%, driven by robust PMI data that suggests the economy is running too hot and the Federal Reserve must continue hiking rates. This has triggered a broad selloff in bonds, pushing the US dollar to a two-month high and forcing a repricing of all risk assets. The rising cost of capital is particularly punishing for rate-sensitive sectors like housing and construction, where building materials stocks are already trading lower.
Treasury Yields and Macro Shock
The US 10-Year Treasury yield has spiked to a 19-year high of 5.13%, driven by robust PMI data that suggests the economy is running too hot and the Federal Reserve must continue hiking rates. This has triggered a broad selloff in bonds, pushing the US dollar to a two-month high and forcing a repricing of all risk assets. The rising cost of capital is particularly punishing for rate-sensitive sectors like housing and construction, where building materials stocks are already trading lower.