Bond yields surged this week, with the 30-year Treasury yield topping 5.3% for the first time since 2007 and the 10-year yield reaching 4.748%, its highest since January 2025. These moves echo the 1987 crisis, the year of history’s biggest single-day stock market crash, when the same yields peaked above 10%. Stock valuations remain elevated, with the S&P 500’s trailing price-to-earnings ratio around 26, near its 2021 highs, making bonds relatively more attractive. Several factors are driving yields higher, including rising energy prices linked to Middle East tensions and massive corporate debt issuance to fund AI investments.
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