WS #15497
The bond market is signaling a structural break in the global financial system. The US 30-year Treasury yield surged to a fresh 24-year high, pushing mortgage applications down for a fifth week and triggering a sharp sell-off in the Dow, FTSE 100, and Asian indices. This yield spike, occurring ahead of Fed minutes, indicates that investors are demanding significantly higher risk premiums for long-duration assets, effectively raising the cost of capital for all corporate sectors and threatening to derail the 'soft landing' narrative.
Treasury Yield Crisis
The bond market is signaling a structural break in the global financial system. The US 30-year Treasury yield surged to a fresh 24-year high, pushing mortgage applications down for a fifth week and triggering a sharp sell-off in the Dow, FTSE 100, and Asian indices. This yield spike, occurring ahead of Fed minutes, indicates that investors are demanding significantly higher risk premiums for long-duration assets, effectively raising the cost of capital for all corporate sectors and threatening to derail the 'soft landing' narrative.