Great Bond Shakeout Locks In a 5% World ‘Until Something Breaks’

US Treasury yields have risen as multiple factors push government borrowing costs higher, including oil prices above $100 per barrel, increased artificial intelligence spending, a US budget deficit, and a Federal Reserve maintaining higher interest rates to address inflation. The selling pressure accelerated this week following energy price increases and economic data showing business activity remains strong. Kelsey Berro, Fixed Income Portfolio Manager at JPMorgan Asset Management, commented on market developments.

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