The 10-year Treasury yield has broken above 4.5%, the 30-year is back above 5% and Morgan Stanley has warned that current yield levels are entering a danger zone that could trigger a significant correction in U.S. equities.
But according to Dean Chen, analyst at Bitunix Exchange, the headline numbers aren't the real risk. The real risk is what happens when higher yields, persistent fiscal deficits, and tighter global liquidity start reinforcing each other in a loop that nobody can turn off.
