Postcards: Higher for Longer... UST-10Y to 5.25?

We're likely heading higher with interest rates. But there's more to the story than just chatter about the 10-year bond and its impact on equities. This is starting to become a systemic problem.

Dear Fellow Expat:

If you haven’t done so, I advise that you tell that person you love this weekend those three little words that will impact your financial futures together.

“Higher for longer.”

Today, the 10-year U.S. bond pushed back above 5% for the first time since 2007.

This wasn’t surprising.

We began predicting this ascent in interest rates in August when concerns emerged about the impact of Japan’s Yield Curve Control efforts, and questions accelerated around America’s ability to refinance $7.6 trillion in debt next year.

But the headlines are a-screaming.

Go on Twitter or LinkedIn, and suddenly - everyone is an expert in the bond market - with explainers on what it means for “YOUR MONEY.”

Funny… we’re at a point where a generation of investors and Wall Street bankers haven’t operated in an equity market where the 10-year has been over 4.5%.

Things are about to change.

Price discovery is coming.

Liquidity is under pressure.

And the 5% number is VERY important.

Investors like who…