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Forbes
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Treasury Yields Top 5% And Could Rise More. Why And What To Do

1. House bill adds $2.4 trillion to national debt, impacting market sentiment. 2. 30-year Treasury yields rise to 5.1%, signaling reduced interest in U.S. debt. 3. Mortgage rates soar to 7.08%, escalating borrowing costs for consumers and firms. 4. Gold prices near record high, reflecting investors' search for safe assets. 5. Rising yields and fiscal uncertainty may lead to dollar devaluation.

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FAQ

Why Bearish?

The increased national debt and rising interest rates create economic instability. Historical events show that similar fiscal concerns have led to market downturns.

How important is it?

High national debt and rising interest rates are critical factors that influence S&P 500 valuations.

Why Short Term?

Immediate effects are expected as interest rates climb and consumer sentiment drops, which typically affects stock prices quickly.

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