You wouldn’t know it by the headlines. But the US economy is breaking in plain sight. Only the savings cushion of the richest 20% are keeping it afloat. And if interest rates keep rising nearly every day, even that won’t be enough.
The beginning of the quarter has gotten off to a torrid start with long-term Treasury yields rising above 4.75% in the first day and a half of trading through Tuesday morning. It’s a continuation of the end-of-quarter trend, when almost every day we hit new multi-year highs across the longer maturity end of the Treasury curve.