WS #14689
The US Treasury market is experiencing a historic repricing, with the 10-Year yield breaking 5.15% and the 30-Year yield reaching 5.44%, levels not seen since the mid-2000s. This surge, fueled by 75% odds of a Fed rate hike and a $6 billion long-dated bond buyback, has forced a massive liquidation across risk assets. Long-duration bonds ($TLT) and real estate ($VNQ) are suffering double-digit percentage declines over recent weeks, while Bitcoin has been forced below $84,000 as the opportunity cost of holding non-yielding assets becomes prohibitive.
Treasury Yield Shock and Liquidity Drain
The US Treasury market is experiencing a historic repricing, with the 10-Year yield breaking 5.15% and the 30-Year yield reaching 5.44%, levels not seen since the mid-2000s. This surge, fueled by 75% odds of a Fed rate hike and a $6 billion long-dated bond buyback, has forced a massive liquidation across risk assets. Long-duration bonds ($TLT) and real estate ($VNQ) are suffering double-digit percentage declines over recent weeks, while Bitcoin has been forced below $84,000 as the opportunity cost of holding non-yielding assets becomes prohibitive.