Something is happening in the bond market. And this is bothering people. The 30-year Treasury bond yield has reached its highest level. And if there’s one thing we don’t know today, it’s where long-term interest rates are ultimately going to go. you not know. I don’t know. Even Mr. Market doesn’t know. But what I do know is this. When bond yields rise like this, it’s a sign.
First – How do bond yields actually work?
You see, long-term bond yields – especially 10-year and 30-year Treasury yields – are driven by market forces. Unlike short-term interest rates, which are directly influenced by central banks, long-term yields reflect what the market is thinking – inflation, economic growth, purchasing power, etc. When they buy bonds, the yields fall. When they sell bonds, yields rise. Today, rising 30-year yields mean investors are demanding higher yields before lending…
