.<\/em><\/p>\nSomething 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.<\/p>\n
First \u2013 How do bond yields actually work?<\/strong><\/p>\nYou see, long-term bond yields \u2013 especially 10-year and 30-year Treasury yields \u2013 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 \u2013 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…<\/p><\/div>\n