30-YEAR TREASURY YIELD BECOMES MARKET’S NEW FEAR GAUGE
The US 30-year Treasury yield has become a key market focus as concerns over government debt and fiscal credibility intensify.
A Bloomberg survey shows 66% expect the 10-year yield to exceed 5% this year.
But KB Securities says investors are too pessimistic.
It argues policymakers still have tools to contain yields, including Treasury buybacks, fiscal tightening, Operation Twist and bank deregulation.
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