Bank of America’s chief investment strategist Michael Hartnett warns that if long-term Treasury yields remain uncontrolled, pressure will hit the dollar, equities, and all asset classes dependent on cheap money. The 30-year Treasury yield recently crossed above 5%, landing around 5.126%, the highest level in roughly 25 years. US national debt is approaching $40 trillion with annual interest payments running between $1.4 trillion and $1.5 trillion. Hartnett projects this trajectory could push total debt to $50 trillion by 2029 if fiscal policy doesn’t change course, urging investors to rotate toward defensive assets and gold.
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