The 10-Year Treasury Yield over 5%? Some Thoughts
The economy did fine with a 10-year yield of 5-8%, including in the 1990s, amid a tight labor market and lots of economic growth.
Source: Wolf Street
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DW NOTE
The 1990s ran 3% deficits in a peace dividend with a tech boom funding the Treasury. Today's economy is running a $1.9 trillion deficit — 6.6% of GDP — with the Strait of Hormuz closed for 189 days and rate cuts priced in despite 4.77% tens. If 5% arrives, it won't be 1995; it will be the market repricing the cost of funding a government that cannot stop borrowing into a war it cannot end.