Bond Market Has a Cow, Treasury Yields Spike across the Board, 10-Year Yield near 5%, 30-Year Yield at 5.37%
Lots of Bad Stuff all at once, topped off by Trump’s $1.35 Trillion Free-Money Promise, $5,000 for every adult American, at the worst possible time.
Source: Wolf Street
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DW NOTE
The 10-year yield is 150 basis points above the Fed's policy rate. That spread reflects one of two beliefs: either inflation will force the Fed to follow the bond market higher, or fiscal policy has become so reckless that Treasury paper now prices in a structural risk premium. Trump's $1.35 trillion giveaway lands in a market already pricing oil at $101 and a federal deficit up 3% year-on-year through June.