Soaring bond yields continue to hit new highs. Seven things driving the moves
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The Treasury market looks like it's determined to find the breaking point for risk assets. US long-dated yields have been rocketing higher since taking out the big 5% figure but that hasn't undermined stock markets yet, or even gold. At some point that will change as ever-higher
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4 itemsBig breakout: US 10-year yields up 16 basis points to the highest since 2007
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.
USD/JPY breaks above 155 as Treasury yields hit highest since 2007
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