Up Next on Treasury Yields, It’s the Bambino or Godot
The narrative of surging 10-year yields signaling a major crash gets told again and again. One day, it might even happen.
Alan Greenspan’s “conundrum” and the Curse of the Bambino have something in common.
Photographer: MPI/Getty Images
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Last week ended with 10-year Treasury yields, the single most important benchmark in world finance, at a pandemic-era high. In one week, they surged by 27 basis points, equivalent to one whole rate hike by the Federal Reserve. This opens up, for the umpteenth time, a familiar narrative: bond yields that have been unnaturally low for years suddenly climb higher, undermining the case for wildly overvalued stocks and sending risk assets into a tailspin.