Bond Market is the Truth | Yields Rise

Bond market is doing the Feds work.

US 10 Year Treasury is about to cross the 4.50% yield level. This is the highest since October 2007.

This is a concern because corporate credit lines along with mortgage rates are attached to the US 2 year and 10 year Treasury’s. Corporation who have debt that is market to market on a monthly or quarterly or annual basis get payment readjustments depending on their renewal date.

The Fed may not have raised rates this week, yet the bond market is doing the work for them.

US 2 Year Treasury

Derivatives Market

I found this on Visual Capitalist. This was created in November of 2022 and shows in visual form the size of the derivatives market as of November 2022. Then it was $600 trillion dollars in comparison to all global household wealth of $463 trillion. Keep in mind that the data this was based on was 10 month old and the US 2 and 10 year Treasury was at 4.31% and 3.88%.

Keep in mind this data is the public data. Does not include the off balance sheet data.

Have a great weekend.

Subscribe for $13 a month.

Subscribe now