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Echoes

<h2 id="quick-take">Quick Take</h2> 
The bond market is exhibiting significant destruction, as reflected by the current state of the U.S. 10Y note. Recently, the yield on the note surged above 4.843%, a high unseen since 2007 and just 17bps from the 5% mark. This high-yield period precedes the creation of Bitcoin by several years, illustrating just how long ago it was. 
<figure id="attachment_365661" aria-describedby="caption-attachment-365661" style="width: 100%" class="wp-caption aligncenter">
 <img class="wp-image-365661 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/10/10Y1.png" alt="US10Y &amp; BTCUSD: (Source: Trading View)" width="1542" height="969" srcset="https://cryptoslate.com/wp-content/uploads/2023/10/10Y1.png 1542w, https://cryptoslate.com/wp-content/uploads/2023/10/10Y1-300x189.png 300w, https://cryptoslate.com/wp-content/uploads/2023/10/10Y1-1024x643.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/10/10Y1-768x483.png 768w, https://cryptoslate.com/wp-content/uploads/2023/10/10Y1-1536x965.png 1536w" sizes="(max-width: 1542px) 100vw, 1542px">
 <figcaption id="caption-attachment-365661" class="wp-caption-text">
 US10Y &amp; BTCUSD: (Source: Trading View)
 </figcaption>
</figure> 
The rise in U.S. yields follows a considerable unexpected surge in U.S. retail sales, where the month-over-month increase reached 0.7%, more than double the initial projection of 0.3%. 
<figure id="attachment_365663" aria-describedby="caption-attachment-365663" style="width: 100%" class="wp-caption aligncenter">
 <img class="wp-image-365663 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/10/RSMOM.png" alt="Retail Sales, month over month :(Source: Trading Economics)" width="1315" height="79" srcset="https://cryptoslate.com/wp-content/uploads/2023/10/RSMOM.png 1315w, https://cryptoslate.com/wp-content/uploads/2023/10/RSMOM-300x18.png 300w, https://cryptoslate.com/wp-content/uploads/2023/10/RSMOM-1024x62.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/10/RSMOM-768x46.png 768w" sizes="(max-width: 1315px) 100vw, 1315px">
 <figcaption id="caption-attachment-365663" class="wp-caption-text">
 Retail Sales, month over month :(Source: Trading Economics)
 </figcaption>
</figure> 
This surge signifies a strong sell-off in the bond market, evident in the performance of long-duration bonds such as the TLT, a 20-year+ treasury bond. The TLT opened at a notably low level of 84.89, a mark only replicated a scant few times in 2004 and 2006. 
<figure style="width: 100%" class="wp-caption alignnone">
 <img src="https://pbs.twimg.com/media/F8pOhcybIAA8cz_?format=jpg&amp;name=large" alt="TLT: (Source: Trading View)" width="1542" height="969">
 <figcaption class="wp-caption-text">
 TLT: (Source: Trading View)
 </figcaption>
</figure> 
This paints a stark picture of the upheaval bonds have endured due to the most rapid tightening of interest rates witnessed in four decades. The bond market is in a precarious position due to the intricate inverse relationship between bonds and yields, a dynamic that becomes even more critical in the current climate of swiftly rising interest rates. 
The post <a rel="nofollow" href="https://cryptoslate.com/insights/echoes-of-07-10-year-u-s-treasury-note-yield-rises-to-pre-crisis-levels/">Echoes of ’07: 10-year U.S. Treasury note yield rises to pre-crisis levels</a> appeared first on <a rel="nofollow" href="https://cryptoslate.com">CryptoSlate</a>.

Echoes of ’07: 10-year U.S. Treasury note yield rises to pre-crisis levels

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