10-year Treasury yield just hit its highest level since 2007.
This is the bond market screaming. When yields spike like this, it means investors are demanding more compensation for holding long-term debt. Could be inflation fears, fiscal concerns, or just the market repricing the "higher for longer" reality.
For equities, this matters. Higher yields mean:
- Discount rates go up (growth stocks get hit hardest)
- Borrowing costs rise for companies
- Cash and bonds become more attractive vs stocks
We haven't seen these levels in 17 years. That's not noise.
This is the bond market screaming. When yields spike like this, it means investors are demanding more compensation for holding long-term debt. Could be inflation fears, fiscal concerns, or just the market repricing the "higher for longer" reality.
For equities, this matters. Higher yields mean:
- Discount rates go up (growth stocks get hit hardest)
- Borrowing costs rise for companies
- Cash and bonds become more attractive vs stocks
We haven't seen these levels in 17 years. That's not noise.
