Rising Interest Rates Could Present A Problem For Risk Assets

Exactly one year ago I wrote, “long bonds enter the blowoff stage” (and “a few more thoughts on the long bond blowoff“). Since then the 30-year Treasury yield has risen 40% and the 10-year Treasury yield has risen 75%. This is an important development for investors to take note of because when interest rates have risen this rapidly in the past it has typically led to some stormy weather for risk assets.