The Bad PlaceUS Top News and Analysis | U.S. Treasurys are now firmly in the 'danger zone,' strategists say
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U.S. Treasury bonds have entered what HSBC strategists call a “danger zone,” as long‑term yields surge— the 30‑year Treasury rose above 5.19%, its highest level since 2007, and the benchmark 10‑year approached 4.69%. Analysts warn that sticky inflation and hawkish rate expectations could spill over into equities and other risk assets, especially if the 30‑year climbs toward 5.25% or the 10‑year hits 4.65%, which could trigger broader market stress and pull back equity valuations. Despite the sell‑off, markets have held up so far thanks to strong corporate earnings, partially adjusted valuations, and expectations that recent Middle‑East tensions will largely affect only oil prices. Interactive Brokers’ chief strategist calls the current environment a “yellow alert,” noting the psychological significance of yields breaching levels not seen since 2007.
Read more: https://www.cnbc.com/2026/05/20/us-treasurys-are-now-firmly-in-the-danger-zone-strategists-say.html
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