MACRO REGIME CLASSIFICATION
Higher-For-Longer Pressure
Long-dated sovereign yields exceed historical inflation hurdle rates. Real term premia surge to absorb sovereign supply, causing duration risk repricing across fixed income and valuation contraction in growth equities.
Modeled 10Y Treasury Yield
5.02%
+102 bps above 4.00% anchor
Annual U.S. Debt Servicing Cost
$1.16 T
Consuming ~21.5% of Federal revenues
Benchmark Bond Portfolio Loss (Duration ~7Y)
-11.2%
Capital drawdown on intermediate/long Treasuries
Equity Multiple Contraction (P/E Impact)
-8.5%
Discount rate repricing on equity risk premium (ERP)