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Treasury Market Gets Memo with Subject Line: “Higher for Longer” but Someone Scribbled Next to it, “Maybe Forever?”

by Wolf Richter Wolf Street

“Neutral rate” creeping higher? Oh dearie! Bloodbath at the long end.

The 10-year Treasury yield jumped 14 basis points today to 4.49%, the highest since October 2007. Bond prices fall when yields rise, so this was quite a bloodbath today at the long end of the Treasury market.

[…] “Neutral rate” creeping higher? Oh dearie!

It seems the Treasury market is gradually reading the memo that has been passed around for about a year. The subject line says: “Higher for longer,” and yesterday someone scribbled next to it, “maybe forever?”