The yields on 10-year and 30-year U.S. Treasury bonds have just hit their highest levels in 24 years. Speaking at a TS Lombard event in London on Tuesday, Rupert Harrison, a senior advisor and portfolio manager at PIMCO, said current bond market valuations had become extremely attractive.
The surge in yields reflects deep investor concerns about persistent inflationary pressures and the U.S.’s massive fiscal deficit. Markets are having to reprice term risk as public debt issuance continues to rise on a large scale.
Decade-high bond yields are putting heavy pressure on traditional risk assets and technology stock valuations. At the same time, rising borrowing costs are boosting the U.S. dollar, putting pressure on alternative investments to adjust.
For the crypto market, these attractive risk-free yields could temporarily curb new inflows into $BTC and altcoins. However, if yield pressures lead to recession risks or force a reversal in monetary policy, safe-haven capital could soon return to digital markets.
#US еёTreasury #BondYields #PIMCO #MacroEconomy
The surge in yields reflects deep investor concerns about persistent inflationary pressures and the U.S.’s massive fiscal deficit. Markets are having to reprice term risk as public debt issuance continues to rise on a large scale.
Decade-high bond yields are putting heavy pressure on traditional risk assets and technology stock valuations. At the same time, rising borrowing costs are boosting the U.S. dollar, putting pressure on alternative investments to adjust.
For the crypto market, these attractive risk-free yields could temporarily curb new inflows into $BTC and altcoins. However, if yield pressures lead to recession risks or force a reversal in monetary policy, safe-haven capital could soon return to digital markets.
#US еёTreasury #BondYields #PIMCO #MacroEconomy