<div id="readability-page-1">Inflation weakens bond cushion: Morgan Stanley finds bonds lose their shock-absorbing role when inflation exceeds 2.4%, with current inflation at 3.8% keeping risks elevated. Fiscal risks mount: Bank of America warns worsening U.S. deficits and higher interest costs are fueling a bond market selloff, with long-term yields at highs not seen since 2007. Fed chair’s tough debut: New Fed chief Kevin Warsh faces a ‘doom loop’ where rising yields increase debt costs, widen deficits, and trigger more borrowing.</div>

GOVT

<p>Morgan Stanley reports that bonds lose their protective role against inflation when rates exceed 2.4%, with current inflation at 3.8%. Bank of America highlights that rising U.S. deficits and interest costs are causing a bond market selloff, pushing long-term yields to levels not seen since 2007. New Fed chair Kevin Warsh faces challenges as rising yields increase debt costs and widen deficits.</p>

iShares 7-10 Year Treasury Bond ETF

iShares Barclays Short Treasury

iShares barclays 20+ Yr Treasury Bd

iShares TIPS Bd

SPDR Bloomberg 1-3 Month T-Bill ETF

ISHRS Us Trsry Bd

Pro Ultrshrt 20+Yrs Trsy

Direxion 20+Yr Trsry Bear 3X

Morgan Stanley

Bank of America

MORGAN STANLEY DEP SHS EA REP 1/1000 SHS NON CUM PFD O

MORGAN STANLEY DEP SHS REPSTG 1/1000TH PFD SER Q

MORGAN STANLEY DEP SHS REPS 1/1000 7.125% PFD E

MORGAN STANLEY NON-CUM DEP SH REP 1/1000 PFD SER I

MORGAN STANLEY 4.875 DEP SHS REP 1/1000 NCUM PFD SR L

MORGAN STANLEY 6.5%DEP SHS REPSTG 1/1000 NON CUM SER P

MORGAN STANLEY DEP SHS REPS 1/1000 PFD SER 'A'

MORGAN STANLEY DEP SHS REPR 1/1000TH INT PFD SER 'F' FX

MORGAN STANLEY DEP SHS REP 1/1000 NON-CUM PFD STK SER K

BANK OF AMERICA CORPORATION DEP SHS REP 1/1000TH INT NON CUM PFD QQ

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200TH PRF SERIES '5'

BANK OF AMERICA CORPORATION 7.25% NON-CUM PERP CONV PFD SER L

BANK OF AMERICA CORPORATION 5.875%NON CUM DEP SHS REP1/1000TH SER HH

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200TH PRF SERIES '2'

BANK OF AMERICA CORPORATION 5% DEP SHS REPR 1/1000TH NON CUM PFD LL

BANK OF AMERICA CORPORATION DEP SHARES REP 1/1000TH PERP PFD SER 'E'

BANK OF AMERICA CORPORATION INCOME CAPITAL OBLIG NTS DUE 15/12/2066

BANK OF AMERICA CORPORATION 4.375% DP SH RP 1/1000TH IN NON CU PF NN

BANK OF AMERICA CORPORATION DEP SH REP 1/1200TH PRF SER 1 USD25

BANK OF AMERICA CORPORATION 5.375%DEP SHS REP 1/1000TH NON CUM SR KK

BANK OF AMERICA CORPORATION 6%NON CUM DEP SHS EACH REP 1/1000 SER GG

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200 PFD SER 4 USD25

BANK OF AMERICA CORPORATION DEP SHS REP 1/1000TH NON CUM PFD SER SS

BANK OF AMERICA CORPORATION 4.125%DEP SH REP 1/1000 PFD SER PP USD25

Bank of America Corp

Hot inflation and fiscal strains threaten bonds’ safety role