Real estate market and economic recession risk amid last week's bond yield storm

Last week's economic story revolved around the treasury bond yield shock and the impact of the Fed's monetary interest rate policy on the market and economy. Government bond rates rising to a 16-year record high clearly demonstrates investors' concerns about recession risk this year. In particular, the student debt repayment deferral for young people ending in August 2023 could exacerbate recession risk from the consumer side.

In addition, another indicator equally sensitive to the Fed's interest rate policy is the home purchase mortgage rate, which has also surged. This is the main guide directing the real estate market; and currently, it is the cause of the demand decline and freezing of this market.

This week's macroeconomics section of Viet Hustler will discuss: the bond market shock, the current real estate market crisis, and recession risk.

Treasury bond yield shock (treasury bill/bond)