Bond yields surge as Fed's Warsh faces $6.7T test

MSN
2026.05.17 16:09
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Bond yields have surged, with the 30-year Treasury exceeding 5% and 10-year yields rising above 4.5%, causing caution in stock markets. New Fed Chair Kevin Warsh faces a critical decision on whether to reduce the Fed's $6.7 trillion balance sheet amid inflation concerns. Additionally, geopolitical tensions, particularly the Iran conflict, are keeping oil prices above $100, which may lead to a new inflation regime.