The Global bond market is in a frenzy of sell-offs, with US Treasury yields rapidly approaching 5%.

The 20-year US Treasury yield has already broken through 5%, while the UK 10-Year Treasury Notes Yield has also risen to 4.82%, reaching a new high since 2008. Inflation worries have prompted traders to lower their expectations for interest rate cuts by the Federal Reserve and the Bank of England this year, and at the same time, the market is weighing the impact of President Trump's policies.

wallstreetcn30minutes ago

The last time the US bonds dropped like this, the US stock market also crashed.

Recently, the rise of the 10-year U.S. Treasury yield is similar to the situation in 2022 and 2023, when the stock market experienced a substantial decline. Goldman Sachs stated that although the U.S. stock market is relatively stable now, the correlation between stock and bond yields has turned negative. If economic data falls short of expectations, the risk of a market correction in the short term may increase.

wallstreetcn37minutes ago

Futu Daily Report | Will the Federal Reserve pause interest rate cuts? Meeting minutes show officials are eager to slow down the pace of rate cuts; U.S. stocks are closed today in mourning for the death of former President Carter's.

The Trump team is reportedly considering declaring a national economic emergency to implement high and widespread tariffs; Bearish surprise! A single remark from NVIDIA CEO Jensen Huang triggered a collective drop in USA quantum computing stocks.

Futu News08:14

Yellen: Biden's pandemic spending may "slightly" drive up inflation, a stronger economy fuels U.S. debt selling.

Yellen stated that the government spending following the pandemic is necessary, and that high inflation mainly stems from supply chain issues; she is confident that inflation remains on a downward trajectory; the current sell-off of U.S. Bonds is due to the economy being stronger than expected, leading to a repricing of market interest rate expectations, but the term premium has begun to normalize; she hopes the Trump administration will take the deficit seriously and does not wish to see the 'Bond Vigilantes' make a comeback; after leaving her position as Treasury Secretary, she may return to the Brookings Institution.

wallstreetcn08:00

Continuing with the 10-year U.S. Treasury bond, the newly released 30-year U.S. Treasury bond auction rate has also reached the highest level since 2007.

On Wednesday, the USA Treasury auctioned 22 billion dollars of 30-year government bonds, with the results similar to the Tuesday auction of 10-year bonds, both receiving winning rates that reached new highs since 2007.

wallstreetcn03:49

What would it mean for the market if the 10-year U.S. Treasury yield surpasses 5%?

Bank of America believes that if U.S. Treasury yields exceed 5%, investors may reassess the valuation of risk Assets, putting pressure on the stock market.

wallstreetcnJan 8 23:46