đš WARNING: US TREASURIES JUST HAD THEIR WORST MONTH IN 4 YEARS.
September was brutal for the bond market.
The 10-year Treasury yield jumped more than 50 basis points to 5.3% its sharpest monthly rise since September 2022.
And the 30-year yield?
Itâs now at its highest level since June 2002.
But the bigger concern is what happens next.
Rising yields are pressuring funds, including mortgage-bond holders, to sell Treasuries.
More selling pushes Treasury prices lower.
Lower prices push yields higher.
Higher yields can trigger even more selling.
JPMorgan Asset Managementâs Priya Misra described the dynamic as a âvicious loop.â
And increased Treasury purchases have so far failed to stop the selling pressure.
This matters far beyond the bond market.
Treasury yields influence mortgages, corporate borrowing costs, equities, the dollar and financial conditions across the global economy.
The US bond market is sending a signal investors canât afford to ignore.
#Treasury #Bonds #FederalReserve #Markets #Finance
September was brutal for the bond market.
The 10-year Treasury yield jumped more than 50 basis points to 5.3% its sharpest monthly rise since September 2022.
And the 30-year yield?
Itâs now at its highest level since June 2002.
But the bigger concern is what happens next.
Rising yields are pressuring funds, including mortgage-bond holders, to sell Treasuries.
More selling pushes Treasury prices lower.
Lower prices push yields higher.
Higher yields can trigger even more selling.
JPMorgan Asset Managementâs Priya Misra described the dynamic as a âvicious loop.â
And increased Treasury purchases have so far failed to stop the selling pressure.
This matters far beyond the bond market.
Treasury yields influence mortgages, corporate borrowing costs, equities, the dollar and financial conditions across the global economy.
The US bond market is sending a signal investors canât afford to ignore.
#Treasury #Bonds #FederalReserve #Markets #Finance
