The 10-year Treasury is having its worst run in over 100 years. Why investors are buying bonds anyway.

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1. 1h ago

   10-Year Treasury Endures Worst Run in a Century as Yields Cross 5 Percent

   The 10-year Treasury is experiencing its worst run in over 100 years, pushing yields past the five percent threshold amid soaring deficits and heavy government borrowing. Despite this historic downturn, investors continue to purchase bonds, with Bank of America declaring the current conditions a generational entry point for United States debt. Bond market struggles remain a factor for the Federal Reserve, although direct intervention is viewed as unlikely by market watchers.

   Why it matters

   Surging yields across the bond market reflect growing unease over reckless borrowing across the developed world, compounding pressure from towering national debts. Analysts monitor the 10-year yield closely because a continued breakout threatens to weigh down broader equity markets. High bond yields are increasingly viewed by major institutions as the new normal rather than a temporary anomaly.

   What is confirmed

   • The 10-year Treasury is enduring its worst run in over 100 years.
   • The 10-year Treasury yield has crossed 5 percent.
   • Bank of America declared a generational entry point in United States bonds.

   Still unconfirmed

   • Bond market woes will force an intervention by the Federal Reserve.

   What to watch next

   • Whether the 10-year Treasury yield reaches levels that trigger a broader breakout and hold back stocks.
   • Any shift in Federal Reserve policy or intervention regarding bond market volatility.
   Sources used for this update (8)

   1. WSJ — What Comes Next, Now that the 10-Year Treasury Yield Has Crossed 5%?
   2. The Economist — Soaring bond yields, gaping deficits and towering debts: what could go wrong?
   3. Bloomberg.com — Why High Bond Yields Look Like the New Normal
   4. The Economist — Markets are waking up to the rich world’s reckless borrowing
   5. MarketWatch — The 10-year Treasury is having its worst run in over 100 years. Why investors are buying bonds anyway.
   6. Yahoo Finance — Bond market woes likely a factor for Fed, but intervention seen as unlikely
   7. Barchart.com — Bank of America Just Declared a ‘Generational Entry Point’ in U.S. Bonds. Why Investors Should Be Backing Up the Truck on Treasuries Here.
   8. cnbc.com — A breakout in the 10-year Treasury yield could hold back stocks if it reaches this level
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