US bond interest rates and yields are inherently a seesaw relationship. A rate cut lowers the interest rate, and when rates are low, US bond yields will rise. This is because new bonds have lower rates while older bonds have higher rates, so higher-rate bonds in the secondary market will naturally appreciate, causing yields to surge.
Soaring U.S. Treasury yields are dragging down the market
Trump, go save your U.S. Treasuries. Treasuries have crashed the market again, with both 20-year and 30-year yields breaking above 4.8%,
It almost feels like the Fed raised rates. They’ve been cutting for a year and are now even buying bonds directly, yet yields are higher than before the cuts. What’s the point of cutting rates then?
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