The Last Time US Yields Rose So Much, It Sank the Economy Twice - Bloomberg

There’s a good reason why investors are amazed that something hasn’t broken in the economy yet: The last time US government bond yields climbed so far, so fast, the nation plunged into back-to-back recessions.

The 10-year Treasury yield — a key baseline for the cost of money across the financial system — has jumped more than four full percentage points over the past three years, briefly pushing it this week over 5% for the first time since 2007. It’s the biggest increase since the run up in the early 1980s, when Paul Volcker’s efforts to slay inflation pushed the 10-year yield to nearly 16%.

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The Last Time US Yields Rose So Much, It Sank the Economy Twice - Bloomberg
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