Global Bond Markets Are Breaking — And Bitcoin Is Caught in the Crossfire!

The 30-year US Treasury yield has surged to 5.12%, its highest level since the run-up to the 2008 global financial crisis. The UK's 30-year gilt hit 5.85% — a level not seen since 1998 — and Japan's 30-year yield reached 4% for the first time in history. The US stock market shed nearly $1 trillion in market cap in a single session as the repricing accelerated. Markets now price a 60%+ probability that the Fed's next move is a rate hike, with cuts fully off the table.

Two forces are driving the yield surge: sticky inflation — amplified by the closure of the Strait of Hormuz pushing up energy and food prices — and a wave of foreign central banks selling US Treasuries to fund domestic needs. Auto loan delinquencies have hit 32-year highs, and 7%+ mortgage rates are now being forecast, meaning any further rate hikes would detonate consumer credit.

The Fed is trapped. Hiking aggressively…