U.S. 10-Year Treasury Yield Climbs to Highest Level Since November 2023

The U.S. 10-Year Treasury yield climbed to its highest level since November 2023 this week, reflecting deep investor anxiety about shifting macroeconomic conditions. Analysts argue that rising R-star, the economy's neutral interest rate, may be structural higher due to massive AI investment and heavy government borrowing. Portfolio managers warn that a transition away from globalization toward protectionism, fueled by tariffs and geopolitical conflict, has created permanent inflationary impulses. These factors suggest interest rates will remain elevated longer than previously expected. A surge in global dollar asset concentration leaves international markets vulnerable to potential American economic shocks. Chinese leveraged traders are unwinding stock bets as bond yields rise. Meanwhile, Asian equities posted gains on Friday, with the Nikkei rising 0.6% and Hang Seng surging 2.1%, driven by improved regional sentiment following early U.S. tech gains.