Gut-Wrenching Surge in US Real Yields Is Crushing Risky Assets
- Interest rates adjusted for inflation climb at a record pace
- Rising rates are hammering most speculative financial assets
This article is for subscribers only.
It’s fast and it’s furious and it’s toxic for other asset classes.
It’s the rise in 10-year US real yields -- seen by some as the true benchmark for borrowing costs -- which have soared over 150 basis points in the past 60 trading days, while the Federal Reserve turned ever-more hawkish. Investors calculate real yields by adjusting nominal ones for inflation.