Bonds Are Going Haywire Again — Howard Marks Explains Why

Howard Marks argues rising Treasury yields reflect a structural U.S. fiscal problem, not a temporary anomaly, and rates likely stay elevated for years.

• Yields hit multi-decade highs: The 10-year Treasury yield topped 5.1% (19-year high), the 30-year touched levels not seen since 2004, and even the 5-year breached 5%, despite Treasury Secretary Bessent's $6 billion buyback operations.
• Marks names three drivers: Howard Marks attributes rising yields to stubborn inflation (stuck around 3.4% after Ukraine-driven oil spikes), concern over the U.S.'s approaching-$40 trillion debt and $2 trillion deficits during prosperity ('profligacy'), and heavy capital demand from AI investment competing with Treasury issuance.

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