Yield Curve

Bloomberg and CNBC report that the US Treasury selloff has intensified with the 10-year yield hitting multi-year highs. In parallel, the Trump administration has rejected Iran’s latest diplomatic overture, layering geopolitical risk on top of rate pressure and pushing US stocks lower at the open. Investor focus has broadened from rates alone to a multi-factor repricing of the fiscal outlook, inflation expectations and Middle East risk, driving a phase of asset allocation and risk-preference adjustment.

Bloomberg reports that the US bond market is approaching a key threshold for sounding the recession alarm, with yield-curve inversion risk rising again. The signal comes against the backdrop of a still-intact AI-led bull market and elevated equity valuations, underscoring the underlying tension in the US macro-financial environment.