NewsHK
Treasury yields have reached a 19-year high of 5.35%, a level that is eroding the market value of existing fixed-income holdings and altering the risk calculus for equity investors.
This shift marks a decisive break from the low-rate environment that prevailed between 2009 and 2022, where dividend-paying stocks often served as the primary income alternative to bonds.
The immediate impact on the bond market is a reduction in the price of existing debt instruments.
To align with higher current yields, the market has lowered the value of bonds held by investors, with the average 30-year Treasury losing approximately 5% of its market value over the past year.
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