WS #15004
US 10-year Treasury yields have surged past 5.25%, driven by sticky inflation expectations and a St. Louis Fed measure pricing in near-certain PCE inflation above 2.5%. This macro backdrop forces a re-pricing of risk assets, particularly hurting high-multiple growth stocks and REITs. The market is increasingly pricing in a hawkish Fed, with polymarket odds suggesting rate hikes rather than cuts in the near term.
Treasury Yields & Fed Policy
US 10-year Treasury yields have surged past 5.25%, driven by sticky inflation expectations and a St. Louis Fed measure pricing in near-certain PCE inflation above 2.5%. This macro backdrop forces a re-pricing of risk assets, particularly hurting high-multiple growth stocks and REITs. The market is increasingly pricing in a hawkish Fed, with polymarket odds suggesting rate hikes rather than cuts in the near term.