Published Aug 18, 2026, 5:08 PM ET · Updated 3 months ago · 1 source
Market self-corrects against extreme Treasury yields preventing crashes
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Original Report
The common fear that a 5% 10-year Treasury yield will cause a stock market crash and government implosion is unfounded because the market self-corrects; if interest rates significantly exceed nominal GDP expectations, investors would buy Treasuries due to favorable risk-reward, creating an equilibrating mechanism that stabilizes rates.