Dow Drops 450 Points as 10-Year Treasury Yield Hits 5%
Bond-market volatility pushed the 10-year yield to 5.04%, while Bank of America said fund managers see fixed-income chaos as the top market risk.
- On Tuesday, the 10-year Treasury yield jumped to its highest level in nearly two decades, rattling Bond-market investors as the Federal Reserve prepares for a policy meeting expected to end in a rate hike.
- Investors are selling bonds due to dissatisfaction with America's fiscal path and inflation concerns, Carol Schleif, chief market strategist at BMO Wealth Management, noted in response to the yield surge.
- The 10-year Treasury yield rose to 5.04% early in the day before paring back to around 5%, while a $6 billion bond buyback announced by Treasury Secretary Scott Bessent last week failed to stem the rise.
- BofA analysts wrote that the top tail risk is a "disorderly" rise in bond yields, flagging chaos in fixed income as Major indexes dropped amid investor concerns.
- Elevated yields could persist due to geopolitical concerns and elevated energy prices, Schleif said, though analysts cautioned that "a warning bell never rings at interest rate tops.
22 Articles
22 Articles
Sovereign debt interest rates continue to rise on Tuesday, with the cost of US debt even reaching its highest level in 19 years. ...
The 10-year Treasury yields have been at their peak since 2007 driven by the rise in energy prices, debt and inflation. The rise comes as the Fed meets to decide whether or not to raise interest rates. (ANSA)
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Debt-making is as expensive for the US as it has been since the financial crisis. This limits the financial room for manoeuvre of the Trump administration. It should also be more expensive for German consumers.
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