Big breakout: US 10-year yields up 16 basis points to the highest since 2007
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The bond market has a big problem. US borrowing costs are racing higher and are now at the most-costly levels since 2007. That's a heavy price to pay for the $40 trillion Those costs feed indirectly into mortgage rates, corporate borrowing costs and the discount rate for equities
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US 10yr: Gunning for 5%. Eyes on 6%?
Lead — The desk anticipates the US 10-year yield will breach 5%, driven primarily by rising real yields amid fiscal and issuance concerns. Increased oil prices and inflation expectations compound this outlook, raising the specter of a potential surge to 6%. Per the full note from Padhraic Garvey, CFA, bond yields have already moved higher despite the Treasury Department's commitment to buy long-dated debt, indicating a clear market sentiment shift. This trajectory poses risks to the broader risk asset classes, particularly corporate credit, which currently enjoys a relatively calm environment but faces material stress from elevated real rates.