In a Flash, U.S. Yields Hit 1.6%, Wreaking Havoc in Markets
- Stocks, currencies bear the brunt of a repricing in assets
- Concern the Fed is behind the curve sows anxiety in bonds
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After weeks of grumbling, the world’s biggest bond market spoke loud and clear Thursday -- growth and inflation are moving higher. The message wreaked havoc across risk assets.
Benchmark 10-year Treasury yields catapulted to the highest in more than a year at over 1.6% and traders yanked forward their opinion of how soon the Federal Reserve will be forced to tighten policy. Equities tumbled, as higher borrowing costs put pressure on soaring valuations. Even Treasury Secretary Janet Yellen felt the sting, with record low demand for a fresh round of government debt.