United Kingdom

Treasury yields are surging. Here’s what history says might come next for the bond market.

Investors have been dumping US government bonds as the market adjusts to the outlook of interest rates being higher for longer.

The Treasury sell-off that started in early October has ranked among the worst crashes in market history, and as recently as Friday the yield on the 10-year Treasury touched 5% for the first time since 2007.

Despite the panic in markets, trends from decades past suggest that yields are pretty much right in line with expectations for the economy over the medium-term.