Speaking at a TS Lombard economic event in London on Tuesday, PIMCO Senior Advisor Rupert Harrison noted that US Treasury valuations have become exceptionally attractive. This comes as benchmark 10-year and 30-year US Treasury yields surged to fresh 24-year highs this week.
The sharp run-up reflects deepening market anxiety over persistent inflation and expansive fiscal deficits. Long-term sovereign yields reaching multi-decade peaks indicate that fixed-income markets are demanding substantial term premiums, effectively resetting the risk-free rate higher across global finance.
Surging yields exert intense pressure on equity valuations, especially rate-sensitive tech stocks, while tightening financial conditions globally. However, institutional giants like PIMCO moving to lock in these elevated yields could soon establish a local ceiling for borrowing costs.
For digital assets, high risk-free yields create strong competition for capital, subduing speculative liquidity in $BTC and altcoins. Sustained macroeconomic headwinds may keep crypto range-bound until macro rates stabilize and institutional risk appetite returns.
#US её #TreasuryYields #MacroEconomics
The sharp run-up reflects deepening market anxiety over persistent inflation and expansive fiscal deficits. Long-term sovereign yields reaching multi-decade peaks indicate that fixed-income markets are demanding substantial term premiums, effectively resetting the risk-free rate higher across global finance.
Surging yields exert intense pressure on equity valuations, especially rate-sensitive tech stocks, while tightening financial conditions globally. However, institutional giants like PIMCO moving to lock in these elevated yields could soon establish a local ceiling for borrowing costs.
For digital assets, high risk-free yields create strong competition for capital, subduing speculative liquidity in $BTC and altcoins. Sustained macroeconomic headwinds may keep crypto range-bound until macro rates stabilize and institutional risk appetite returns.
#US её #TreasuryYields #MacroEconomics