U.S. bond market meltdown escalates while world looks away

May 13, 2026 (MLN): As global attention remains fixed on the artificial intelligence race and the Iran War, a quiet crisis is unfolding in the U.S. bond market and it is getting worse by the day.

The 30-year Treasury yield has breached the 5.00% mark, while the 10-year yield is closing in on 4.50% a level so alarming that it triggered President Trump's 90-day tariff pause back in April 2025, according to a recent post by The Kobeissi Letter on LinkedIn.

Notably, long-term yields have now climbed above where they stood before the Federal Reserve began cutting rates, delivering a stark reminder that the Fed holds little power over the long end of the yield curve.

Should yields continue on their current path, U.S. mortgage rates could once again surpass 7.00% before the year is out a prospect that would further strain American households and the broader economy.

With pressure mounting on both markets and the U.S. government, the central question is no longer whether something will give but rather, who folds first.

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