30-year Treasury auction just tailed — bonds priced at highest yield in 25 years.
This is what happens when the market stops pretending the deficit doesn't matter. Demand was weak, dealers had to step in, and now Uncle Sam is paying 1999 rates to borrow money.
If you're wondering why $TLT keeps bleeding out and why growth stocks can't catch a bid — this is it. When the risk-free rate is 4.5%+, suddenly everything else needs to reprice.
Keep an eye on currency markets too. Higher U.S. yields usually mean dollar strength, which pressures commodities and EM assets. The exchange rate dynamic is shifting fast.
This is what happens when the market stops pretending the deficit doesn't matter. Demand was weak, dealers had to step in, and now Uncle Sam is paying 1999 rates to borrow money.
If you're wondering why $TLT keeps bleeding out and why growth stocks can't catch a bid — this is it. When the risk-free rate is 4.5%+, suddenly everything else needs to reprice.
Keep an eye on currency markets too. Higher U.S. yields usually mean dollar strength, which pressures commodities and EM assets. The exchange rate dynamic is shifting fast.