New Age for Treasuries Means 6% Yield Isn’t ‘Out of the Picture’
- DoubleLine’s Whiteley: higher-for-longer ‘finally taken hold’
- Brandywine’s Chen says ‘we are in a regime change’ for bonds
The US Treasury building in Washington, DC.
Photographer: Al Drago/BloombergThis article is for subscribers only.
On Monday, the 10-year Treasury yield climbed over 5%, a 16-year high. It’s a level few would have predicted during the long run of rock bottom interest rates that followed the Great Financial Crisis.
The yield swiftly retreated, perhaps as investors closed out short bets against bonds that paid off in recent weeks. But the Monday morning milestone underscored a troubling reality: a new era appears to be dawning in the US Treasury market — and it’s shredding confidence in any predictions for where yields will peak.