U.S. Treasury Yields Soar, Putting Risk Assets Under Pressure

A surge in U.S. Treasury yields is causing concern for investors as the market experiences a wave of ‘basis trade’ unwinding. This has led to a significant increase in the 10-year and 30-year Treasury yields to 4.5% and 5%, respectively, which is raising liquidity concerns and placing considerable pressure on risk assets. Analysts are closely monitoring the situation as it could lead to further volatility.