Bond Vigilantes Are Back. What's Driving the Selloff and What's the Impact on Stocks?

The yield on 30-year US Treasuries surged to the highest level in nearly two decades, signaling acute investor anxiety. The selloff is attributed to concerns around government debt and renewed scrutiny of elevated risk appetite—tied in part to Big Tech’s aggressive AI spending. The key question is whether higher long-end yields will spill over to derail global equity markets.

Analysis

The yield on 30-year US Treasuries surged to the highest level in nearly two decades, signaling acute investor anxiety. The selloff is attributed to concerns around government debt and renewed scrutiny of elevated risk appetite—tied in part to Big Tech’s aggressive AI spending. The key question is whether higher long-end yields will spill over to derail global equity markets.