“Higher for longer be damned”: consumers and businesses.
By Wolf Richter for WOLF STREET.
The 10-year yield closed at 4.28% today, according to Treasury Department data, the highest since, well, let’s look here, November 14, 2007, so about 15 years ago, having edged past November 2022 and June 2008 by a hair. 2007 is notable in that it was the last year before the arrival of QE.
What is hilarious in a twisted way is that the 10-year yield had dropped to 0.5% in August 2020, and everyone and their dog were preaching to the world that longer-term yields would drop into the negative in the US, as they’d already done in Europe, because of course the 40-year Great Bond Bull Market – Great Bong Bull Market? – would have to continue for evermore, with yields falling deeper and deeper into the negative. I have a term for this: Consensual Hallucination.
The entire sucker-rally from November last year through May this year has now been mopped up.