PIMCO senior advisor and portfolio manager Rupert Harrison said Tuesday at a TS Lombard economic briefing in London that U.S. 10-year and 30-year Treasury yields had both climbed this week to their highest levels in 24 years. Harrison stressed that, after the recent sharp rise in yields, U.S. Treasuries now offer highly attractive value for investors, and that PIMCO is currently maintaining some duration exposure.
Long-term U.S. Treasury yields have reached their highest levels in nearly a quarter-century, reflecting extreme market concerns about persistently high U.S. fiscal deficits and sticky long-term inflation. This latest bond sell-off has not only pushed up the risk-free rate benchmark but has also significantly reshaped institutions’ expectations for asset safety margins.
From a macro-financial perspective, record-high yields are powerfully siphoning off global liquidity, bolstering the resilience of the U.S. dollar index, and putting significant discount-rate pressure on richly valued equities. If economic growth slows or technology stocks undergo a deep correction, funds may flow back more quickly into high-coupon long-term Treasuries, dampening overall risk appetite.
For crypto assets, risk-free yields remaining at historically high levels mean that the opportunity cost for institutions allocating to cryptocurrencies has risen substantially. Under the combined pressures of persistently tightening macro liquidity and liquidity withdrawal, risk assets such as $BTC may face greater valuation pressure and volatility in the short term. #US10Y #BondMarket #MacroEconomy
Long-term U.S. Treasury yields have reached their highest levels in nearly a quarter-century, reflecting extreme market concerns about persistently high U.S. fiscal deficits and sticky long-term inflation. This latest bond sell-off has not only pushed up the risk-free rate benchmark but has also significantly reshaped institutions’ expectations for asset safety margins.
From a macro-financial perspective, record-high yields are powerfully siphoning off global liquidity, bolstering the resilience of the U.S. dollar index, and putting significant discount-rate pressure on richly valued equities. If economic growth slows or technology stocks undergo a deep correction, funds may flow back more quickly into high-coupon long-term Treasuries, dampening overall risk appetite.
For crypto assets, risk-free yields remaining at historically high levels mean that the opportunity cost for institutions allocating to cryptocurrencies has risen substantially. Under the combined pressures of persistently tightening macro liquidity and liquidity withdrawal, risk assets such as $BTC may face greater valuation pressure and volatility in the short term. #US10Y #BondMarket #MacroEconomy