Rising US Bond Yields Spark Recession Fears and Economic Risk

The surge in long-term US Treasury yields, with the 30-year yield briefly surpassing 5%, is raising concerns about a "hard landing" and increasing the risk of a recession. The high bond yields make borrowing more expensive for consumers and companies, undermining the economy. The continued resilience of the job market has led to expectations of further interest rate hikes by the Federal Reserve, which had hoped for a "soft landing." The rise in yields, coupled with rising federal budget deficits, an auto workers strike, and the resumption of student loan payments, could push the economy into a recession.