US Interest rates headed higher
For the first time since the 1980s, the US 10 year treasury yield is showing a sustained breakout above the red line.. the 120 SMA in this chart.
Since US interest rates were trending lower over 30 years, this is monumental.
With the risk of a tariff war growing, and oil prices projected to rise to $90 in the coming months, we can see how this is all coming together.
The world is awash in debt. When this debt comes due, will businesses be able to re-finance? This is going to put the big squeeze on global growth.
The transition to higher rates is happening and will be painful. If rates rise quickly... highly likely.... that pain could prove fatal for many businesses.
Winter is coming...
Since US interest rates were trending lower over 30 years, this is monumental.
With the risk of a tariff war growing, and oil prices projected to rise to $90 in the coming months, we can see how this is all coming together.
The world is awash in debt. When this debt comes due, will businesses be able to re-finance? This is going to put the big squeeze on global growth.
The transition to higher rates is happening and will be painful. If rates rise quickly... highly likely.... that pain could prove fatal for many businesses.
Winter is coming...