The recent sharp selloff in U.S. Treasuries shows no signs of slowing down anytime soon.
Market participants quickly adjusted their outlooks after the 10-year Treasury yield surged past the critical 4.5% threshold.
Analysts now predict that the 10-year yield will rapidly march toward the 4.75% mark.
Rising yields present a significant challenge for U.S. equities by increasing borrowing costs for corporations and consumers.
Stronger consumer and producer price data fuel fears that the Federal Reserve will maintain high interest rates.
Long-term inflation expectations recently neared a three-year high, signaling deep investor anxiety over future purchasing power.
A structural shift in the buyer base also exacerbates market volatility as highly price-sensitive hedge funds dominate purchasing.
Consequently, higher yields no longer attract steady foreign buyers with the same speed or volume as before.
