Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting Club
PRO
LivestreamMenuEd Yardeni isn’t worried about the sharp rise in sovereign bond yields thwarting stocks. Not yet, at least. The 30-year U.S. Treasury bond yield is trading at levels not seen in roughly two decades around 5.3%. Germany’s 10-year bund yield also touched a 15-year high , while Japan’s 10-year government note yield scaled to a multidecade high. Yields in the UK, Italy, Switzerland and Canada are also higher of late. Equities around the world were under pressure amid the move higher in yields, though many of the globe’s largest markets were able to mostly whether the storm. Europe’s Stoxx 600 was down only slightly on Tuesday. U.S. stock futures fell , though they weren’t selling off as of this writing. Asian equities, however, saw sharper declines: Japan’s Nikkei 225 plunged 2.5% overnight; the Korean Kospi lost more than 1%; though China’s Shang eked out a small gain. Yardeni, the president of Yardeni Research and the person who coined the term “Bond Vigilantes” — investors who sell Treasurys to send yields higher and enforce their views on fiscal or monetary policy — isn’t “pushing the panic button.” But that could change if the benchmark 10-year U.S. Treasury note yield goes much higher than current levels. US10Y YTD mountain 10-year Treasury yield in 2026 “For now, we are sticking with our view that the US bond yield should continue to trade in a normal range of 4.00%-5.00%, without causing any adverse consequences for the economy and corporate earnings. Nevertheless, now that the yield is approaching the top of this range, we are monitoring the activities of the Bond Vigilantes more closely,” Yardeni wrote to clients. Indeed, the 10-year traded around 4.73% on Tuesday. It last topped 5% in 2023. “I think at 5% we’ll have plenty of buyers, as we saw in 2023,” Yardeni told CNBC’s “Squawk Box” in an interview. However, he noted there’s plenty for bond vigilantes to worry about, including Federal Reserve policy and the price of oil. Yields may continue to march higher this week, with the Fed set to release the minutes from its July policy meeting on Wednesday.Read More
About The Author
