WS #15208
US 10-year Treasury yields have closed above 5.25%, marking 24-year highs, as a 'vicious loop' of retail bond ETF demand clashes with rising inflation expectations. This macro stress is evident in the halt of Bitcoin ETF inflows after a 9-day streak and net outflows from Ethereum ETFs. The liquidity squeeze is forcing a repricing of risk assets, with JPMorgan warning that elevated leverage and equity positioning could challenge stock performance in Q4.
Bond Yields and Macro Liquidity Stress
US 10-year Treasury yields have closed above 5.25%, marking 24-year highs, as a 'vicious loop' of retail bond ETF demand clashes with rising inflation expectations. This macro stress is evident in the halt of Bitcoin ETF inflows after a 9-day streak and net outflows from Ethereum ETFs. The liquidity squeeze is forcing a repricing of risk assets, with JPMorgan warning that elevated leverage and equity positioning could challenge stock performance in Q4.