US 30-Year at 5.182%: Rising Rates & KOSPI Valuation
I've been watching this bond market action all week, and here's what stood out to me. on May 19, a block of 30-year Treasury futures slammed into the market. Ten trades. One hour. $15 billion in notional value. When the dust settled, the 30-year yield was at 5.182%, the highest since 2007, in the months before Bear Stearns collapsed. The 10-year wasn't far behind, hitting a fresh 52-week high near 4.6%. This wasn't a slow grind. It was a wall of selling. The bond vigilantes, the informal name for investors who punish governments for fiscal profligacy by dumping their debt, opened fire. The trigger? Stalled US-Iran peace talks keeping oil prices elevated, inflation staying stickier than the Fed wants to admit, and US government debt ballooning to levels that make even long-term bulls uncomfortable. BofA's latest fund manager survey captured the mood: 60% of respondents now expect the 30-year yield to breach 6% within 12 months. For Korean investors, this math ...