30-year Treasury yield just touched 5.65% — haven't seen that since 2002.
That's 23 years ago. Think about what that means for anyone with long-duration exposure right now.
Bond math is unforgiving. When yields spike like this, bond prices crater. If you're holding long-dated Treasuries or bond funds, you're feeling it.
This also bleeds into equities. Higher long-term rates = higher discount rates = lower present value for future earnings. Growth stocks with distant cash flows get hit hardest.
Real estate, utilities, REITs — anything that's been priced assuming cheap money for decades — all under pressure.
We're not in a 2% world anymore. The entire market structure is repricing around that reality.
That's 23 years ago. Think about what that means for anyone with long-duration exposure right now.
Bond math is unforgiving. When yields spike like this, bond prices crater. If you're holding long-dated Treasuries or bond funds, you're feeling it.
This also bleeds into equities. Higher long-term rates = higher discount rates = lower present value for future earnings. Growth stocks with distant cash flows get hit hardest.
Real estate, utilities, REITs — anything that's been priced assuming cheap money for decades — all under pressure.
We're not in a 2% world anymore. The entire market structure is repricing around that reality.
