THE 10-year US Treasury bond yield recently reached its highest level since October 2007, rising to as high as 4.69 per cent.
Ten-year yields have risen by more than 60 basis points (bps) in just two months, weighing on the performance of equity markets, with the S&P 500 down more than 7 per cent from its July peak.
Although there are clear signs of US core inflation moderating, markets remain unconvinced that interest rates have peaked. US labour markets remain strong due to a confluence of factors, hence the higher-for-longer interest rates.
Back in March, the Federal Reserve thought US unemployment would hit 4.5 per cent by the end of this year, well above the current level of 3.8 per cent....
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