The global bond selloff is grinding on, with yields climbing day after day — and the 30-year U.S. Treasury has now reached its highest level since June 2002.
Bloomberg's Ruth Carson walks through what's driving the rout and the open question hanging over every trading desk: how much higher yields can go from here.
A multi-decade high in the long bond reprices everything built on top of it — mortgage rates, corporate borrowing costs, and the discount rates underpinning equity valuations. Each daily climb tightens financial conditions a notch further, whether or not the Fed moves at all.
For investors, the signal to watch is whether the selloff stays orderly. A gradual grind higher is one regime; a disorderly spike is another — and the distance between them is measured in days like these.
Via @bloombergbusiness.
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