WS #14702
US Treasury yields are surging, with the 10-year topping 5.15% and the 30-year hitting levels not seen since 2004, driven by hot labor data and inflation fears from the oil shock. This tightening financial condition is pressuring growth stocks and real estate, while polymarket data indicates traders are now assigning significant probability to a 25bps rate hike in October. The bond market is effectively vetoing the 'soft landing' narrative, forcing a repricing of risk assets across all sectors.
Bond Yields Spike and Fed Rate Hike Pricing
US Treasury yields are surging, with the 10-year topping 5.15% and the 30-year hitting levels not seen since 2004, driven by hot labor data and inflation fears from the oil shock. This tightening financial condition is pressuring growth stocks and real estate, while polymarket data indicates traders are now assigning significant probability to a 25bps rate hike in October. The bond market is effectively vetoing the 'soft landing' narrative, forcing a repricing of risk assets across all sectors.