Bond Vigilantes Are Back. What's Driving Selloff and What's the Impact on Stocks?

Summary

The video examines the selloff in long-dated US Treasuries, with the 30-year yield at its highest since 2007. Speakers attribute the move to fiscal worries, inflation angst, and heavy debt supply linked to Big Tech's AI capital spending. They discuss whether rising yields will derail equities, with the 10-year Treasury's 5% level seen as a key trigger and Asian equities viewed as relatively insulated for now.

• 30-year US Treasury yield hits its highest since 2007 as bond vigilantes demand more compensation.
• Drivers include Iran-related inflation angst, US fiscal worries, and abundant debt supply.
• George Efstathopoulos argues the strong CapEx cycle supports a steeper yield curve and solid growth.
• Steve Brice flags the 10-year Treasury yield breaking above 5% as a key trigger for the 30-year.
• Lianting Tu says Big Tech AI spending is increasingly debt-funded, making it vulnerable to higher yields.
• Strong earnings and healthy balance sheets are helping hyperscalers offset yield pressure.
• Asian equities are seen as somewhat insulated because a weaker dollar offsets rising US yields.