Post by SWAN Capital Solutions

YIELDS - TURNING POINT The latest Tariff war and recent Middle East conflict has taught us about how the fixed income market behaves in uncertain times. Our view is that there is a breaking point around 4.5% for the 10-Year US treasury bond, where policymakers tend to shift their stance. There exists a turning point in the 10-Year US treasury yield, prompting coordinated government and Fed responses as shown in the yield chart above. In simple terms, authorities stepped in to buy back bonds, increasing demand and helping support prices. This, in turn, helped keep interest rates from rising too quickly and brought more stability to the overall market during period of uncertainties.