Treasury yields face 4.8% test as fiscal risks threaten to spill into other assets

Treasury yields are facing a test at 4.8%, according to Miller Tabak, with a sustained move above that level potentially causing problems for other asset classes.

The market for US Treasuries has shown concerning signs, with rising yields indicating more dire conditions than they appear, according to Robin Brooks, a senior fellow at the Brookings Institution. He noted that despite economic data releases indicating weaker activity, long-term yields have not decreased, suggesting upward pressure from the market.

The US debt currently stands at $40 trillion. Recent economic data have consistently fallen short of expectations, while oil prices have increased due to the intensifying conflict between the US and Iran, worsening the inflation outlook.

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