U.S. Treasury yields rise to multi-year highs, hard assets attract attention

⑴ The yield on the 30-year US Treasury has just reached 5.48%, its highest level since 2004. ⑵ The 10-year yield stands at 5.20%. ⑶ The 30-year mortgage rate is around 7%. ⑷ The US debt level is approximately $40 trillion. ⑸ Inflationary pressures persist, and bond prices are taking a heavy hit. ⑹ When the financing cost of the world’s largest government debt continues to rise, it is cause for major attention. ⑺ Higher yields mean higher borrowing costs for governments, businesses, and consumers. ⑻ This is why hard assets like gold become worth watching when debt and fiat currency confidence are under pressure. ⑼ From a market perspective, elevated long-term yields and fiscal pressures reinforce each other; going forward, attention should be paid to how higher yields transmit to the valuation of risk assets and economic momentum.