WS #15209
US long-end yields are surging to multi-decade highs, with the 10-Year Treasury at 5.27% and the 30-Year at 5.67%. This move is driven by a steepening curve and credit spread widening, indicating that bond vigilantes are demanding higher compensation for duration risk despite cooling inflation data. The selloff is pressuring the S&P 500's valuation multiple, which has compressed from 23x to 19x, signaling a potential earnings-driven correction rather than a multiple expansion rally.
Treasury Yield Crisis
US long-end yields are surging to multi-decade highs, with the 10-Year Treasury at 5.27% and the 30-Year at 5.67%. This move is driven by a steepening curve and credit spread widening, indicating that bond vigilantes are demanding higher compensation for duration risk despite cooling inflation data. The selloff is pressuring the S&P 500's valuation multiple, which has compressed from 23x to 19x, signaling a potential earnings-driven correction rather than a multiple expansion rally.