The U.S. debt market is in trouble

The 10-year yield soared to 4.47%, and a pause in selling is unlikely to prevent further declines
Just after Trump announced a "10-day pause" on strikes against Iranian power plants, U.S. Treasury yields hit a new high since the Iran war:
📈 The 10-year Treasury yield rose to 4.47%, and mortgage rates hit a 7-month high
📉 This week's three Treasury auctions were met with weak demand, with the direct subscription ratio for 2-year notes dropping sharply from 42.3% to 16.5%
In less than a month, the market has shifted from rate cut discussions to rate hikes — the baseline scenario shows the Federal Reserve will hold steady over the next 18 months.
What’s more challenging: the labor market remains weak, but inflation expectations have become a bigger problem.
This is objectively unsustainable.
#美债 # Federal Reserve #伊朗局势 # 10-year Treasury #RateHikeExpectations