25 October 2023
US bond yields are surging at a pace not seen since the early 1980s, a period that led to two recessions. The 10-year Treasury yield recently exceeded 5% for the first time since 2007. Despite the aggressive interest-rate hikes under Fed Chair Jerome Powell, the economy hasn’t tanked, but the bond market is taking a hit. With increasing federal deficits and major central banks reducing bond purchases, there’s growing uncertainty.