WS #14744
The 10-Year Treasury yield has surged to 5.17%, its highest level since 2007, driven by war-related fiscal deficits and inflation expectations. The CBO's report of $38B in direct war costs exacerbates the supply-overhang narrative for Treasuries. This environment is highly bearish for high-multiple growth stocks and REITs, as the cost of capital remains structurally elevated, forcing a re-rating of long-duration assets.
Treasury Yield Spike and Macro Strain
The 10-Year Treasury yield has surged to 5.17%, its highest level since 2007, driven by war-related fiscal deficits and inflation expectations. The CBO's report of $38B in direct war costs exacerbates the supply-overhang narrative for Treasuries. This environment is highly bearish for high-multiple growth stocks and REITs, as the cost of capital remains structurally elevated, forcing a re-rating of long-duration assets.