Debt's Dark Mirror: Oil Prices and the Bond Market's Vicious Cycle The bond market's recent surge is a stark reminder that even in periods of relative calm, the delicate balance between debt and supply shocks can quickly unravel.
As oil prices continue to soar, threatening to capsize the global economy, it's clear that the dynamics leading up to the Great Recession are repeating themselves.
The 10 year Treasury yield breaching the 5% threshold for the first time since 2023 is a symptom of a deeper issue: our addiction to debt.