WS #14720
The 10-Year Treasury yield has surged to 5.1685%, marking the highest level since 2007 and driving the long-duration bond ETF (TLT) to a record low. This move is reinforced by comments from Philadelphia Fed President Anna Paulson, who indicated that modest further tightening may be necessary to anchor inflation expectations. The hawkish pivot is actively cooling risk assets, evidenced by Bitcoin slipping below $85,000 as traders price in higher probability of an October Fed rate hike.
Rate Hike Fears and Bond Yields
The 10-Year Treasury yield has surged to 5.1685%, marking the highest level since 2007 and driving the long-duration bond ETF (TLT) to a record low. This move is reinforced by comments from Philadelphia Fed President Anna Paulson, who indicated that modest further tightening may be necessary to anchor inflation expectations. The hawkish pivot is actively cooling risk assets, evidenced by Bitcoin slipping below $85,000 as traders price in higher probability of an October Fed rate hike.