WS #15091
The 30-year Treasury yield has surged to 5.612%, its highest level since June 2002, reflecting a deepening bond market revolt against persistent inflation. Fed Governor Barr reinforced this hawkish pivot, stating that the US economy's resilience is 'striking' but that further rate hikes are required to bring supply and demand into balance, citing elevated wage rates in skilled trades. This dynamic is driving a sharp repricing of duration risk, pressuring growth valuations and signaling that the Fed is prioritizing inflation control over market stability.
Bond Market Revolt and Hawkish Fed
The 30-year Treasury yield has surged to 5.612%, its highest level since June 2002, reflecting a deepening bond market revolt against persistent inflation. Fed Governor Barr reinforced this hawkish pivot, stating that the US economy's resilience is 'striking' but that further rate hikes are required to bring supply and demand into balance, citing elevated wage rates in skilled trades. This dynamic is driving a sharp repricing of duration risk, pressuring growth valuations and signaling that the Fed is prioritizing inflation control over market stability.