Kevin Pando
πŸ“ˆ US Treasury Yields Near 5% The yield on the US 30-year Treasury bond briefly touched 5%, its highest since July, as global borrowing costs continue to climb. Similar moves in the UK and Japan highlight a broader bond selloff. Key drivers: - Investor concerns over US fiscal trends and elevated inflation. - Expectations of Fed rate cuts (markets price in two by year-end), which could fuel inflationary pressures. - Divergence between short- and long-term yields is widening, signaling investors want more compensation to hold long-dated bonds. Upcoming catalysts include jobs data and the Fed’s next meeting on Sept. 16-17. A weaker labor market could support Treasuries, while stronger data may push yields even higher. πŸ‘‰ What’s your take? Could higher long-term yields pressure equities, or are we seeing a dip-buying opportunity in bonds?
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