The Bond Market Is Repeating a Pattern Last Observed Ahead of the Great Recession. Here's What History Says Comes Next.
Longer-term bond yields are at some of the highest levels seen since right before the Great Recession in 2007.
Overview
While the stock market has plowed higher for much of the past decade, all eyes have turned to the bond market in recent years.
Following the Great Recession, the Federal Reserve cut interest rates to zero for roughly a decade to stimulate the economy after trillions in wealth got wiped out. But high inflation following the COVID-19 pandemic forced the Fed to raise interest rates.
Details
This year, surging oil prices as a result of the Iran war and a renewed focus on mounting U.S. debt sent longer-dated bond yields soaring. The yield on the 10-year U.S. Treasury note is now 5.18%, while the yield on the 30-year is around 5.5%.
Source
Originally published at www.fool.com.