Bond Market Turmoil Is A Warning Shot For Every Investor

The warnings from Nigel Green come as the benchmark 10-year yield jumped past 5.02%, the 30-year bond climbed above 5.38%, and the 2-year note pushed toward 4.68%.

Traders are now pricing a more than 92% probability that the Fed will raise rates by 25 basis points, a move that seemed almost unthinkable even a few months ago.

Behind the move sits an unusually tight relationship between oil and Treasurys. The one-month correlation between crude prices and the 10-year yield has climbed to 0.96, an extraordinarily high reading that reflects how directly energy costs are now feeding into inflation expectations.

He warns that a rate hike, rather than the cut many investors spent much of the year expecting, would mark a genuine turning point.

Asked what investors should be doing in response, Nigel Green frames it as a moment for discipline rather than panic.

He adds that the Fed's decision will reverberate well beyond the United States.