Yields on 10-year US Treasuries reached 5% on Friday, a decade-high, continuing the selloff that has been accompanied by a sharp price decline since the start of the year.
Investors looking for safe assets amid the Israel-Hamas conflict drove yields down recently, but the bond market has since continued its yearlong trajectory, paving a path for a Bitcoin (BTC) spot exchange-traded fund (ETF).
Investors drove yields higher as the US Federal Reserve and other central banks’ policies appeared to cool prices that, around 18 months ago, were red-hot. However, market shocks introduced by labor strikes, wars, and political challenges have caused prices in several sectors to remain high, causing central banks to suspend cuts for the time being.
High Treasury Yields Upset Playbook
The recent Israel-Hamas conflict caused a brief pause in the bond selloff as investors sought shelter. In October, data from the US Commodity Futures Trading Commission revealed record levels of long positions in US Treasuries.
According to Luke Kawa, an asset allocation strategist at UBS Asset Management, conventional Treasury strategies are being challenged.
“Everyone knows the playbook – you buy duration on the last hike… that playbook is being challenged.”
But some in
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Author: David Thomas
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