Bond Yields Surge, Sparking Financial Chaos and Raising Concerns of Bond Vigilantes

Wall Street forecaster Jim Bianco warns that Treasury yields could surge through 5% in the next couple of weeks, driven by concerns over inflation and the Federal Reserve's stance on interest rate hikes. Bianco believes that the more the Fed talks about being done with rate hikes, the worse it becomes for the bond market. Yields on Treasury notes have already reached their highest levels since 2007, causing volatility in both the bond and stock markets. While some analysts predict extreme scenarios with yields as high as 13-14%, Bianco considers such levels to be unlikely unless a significantly negative event occurs.