The 10-year Treasury yield is arguably the single most important price in global finance because virtually every major asset class is built on top of it. Mortgage rates, commercial real estate valuations, private equity models, corporate borrowing costs, equity multiples, venture capital, and government financing itself all depend on stable Treasury markets.\u00a0When yields rise too quickly, everything starts repricing at once. That is why this matters so much more than the daily moves in the stock market.<\/p>\n
Mom and pop savers are about to get squeezed from every direction at once.<\/strong>\u00a0Their wages will fail to keep up with inflation. Their borrowing costs will rise. Their credit card rates will stay elevated. Their insurance, food, energy, and housing costs will continue climbing. Their retirement portfolios will become more volatile. And eventually, after enduring all of that pain, they will likely watch policymakers step in to rescue the bond market and financial system through another round of monetary intervention that further destroys the purchasing power of their savings.<\/p>\n Meanwhile, the average family gets punished twice. First through inflation, then through the policies used to contain the damage caused by inflation.<\/strong><\/em><\/p>\n https:\/\/www.zerohedge.com\/markets\/bond-market-about-break-washington<\/a><\/p>\n According to CNBC, foreign holdings of U.S. government debt fell sharply in March as central banks sold Treasuries to defend weakening currencies during the geopolitical and energy shock tied to the escalating Middle East conflict. That should deeply concern anyone paying attention to the structural fragility underneath the U.S. financial system.<\/p>\n https:\/\/www.zerohedge.com\/markets\/foreign-treasury-selling-getting-serious<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" For months, investors have focused on missiles, retaliation headlines, oil chokepoints, and the possibility of a broader regional escalation from the Iran War. During the geopolitical noise, I urged readers not to overlook stress in financial markets that was happening … Continue reading AND<\/h3>\n
Foreign Treasury Selling Is Getting Serious<\/h4>\n