WS #15349
The US 20-year Treasury yield has surged to 5.735%, a 24-year high, signaling persistent long-term inflation and deficit concerns. This yield environment is creating a sharp divergence in the equity market: the Nasdaq is hitting record highs on AI momentum, while the Dow and small caps struggle. A weaker jobs report with decelerating wage growth adds to the macro uncertainty, complicating the Fed's path forward.
US Treasury Yields & Macro Divergence
The US 20-year Treasury yield has surged to 5.735%, a 24-year high, signaling persistent long-term inflation and deficit concerns. This yield environment is creating a sharp divergence in the equity market: the Nasdaq is hitting record highs on AI momentum, while the Dow and small caps struggle. A weaker jobs report with decelerating wage growth adds to the macro uncertainty, complicating the Fed's path forward.