WS #15529
The 30-year US Treasury yield has breached 5.69%, a 19-year high, as a strong jobs report and persistent inflation expectations have dashed hopes for imminent Fed rate cuts. This surge in long-term rates is compressing valuations for growth stocks and REITs, while boosting financials. The market is repricing the terminal rate higher, creating a headwind for highly leveraged sectors.
Treasury Yields and Rate Fears
The 30-year US Treasury yield has breached 5.69%, a 19-year high, as a strong jobs report and persistent inflation expectations have dashed hopes for imminent Fed rate cuts. This surge in long-term rates is compressing valuations for growth stocks and REITs, while boosting financials. The market is repricing the terminal rate higher, creating a headwind for highly leveraged sectors.