Guneet Dhingra

The 30-year Treasury yield is de-anchoring and will move higher, potentially reaching 5.25%. The bond market is front-running a hawkish Fed that needs to remove the easing bias and hike rates. The buyer base for Treasuries has shifted from yield-sensitive central banks to more macro-sensitive financial sectors, increasing volatility. Higher long-end yields are also needed as a hedge to slow the equity market momentum, similar to 2023.