Hanke warns Trump's policy cocktail could push bond yields past the red line

Johns Hopkins economist Steve Hanke argues that Trump’s fiscal-monetary mix forms a 'deadly cocktail' for Treasuries, with rapid money growth feeding higher inflation expectations and pushing long-term yields up. He says bond vigilantes are back and that yields have already breached a informal red line set by Scott Bessent (roughly 4% on the 10-year and about 5% on the 30-year), signaling a potential further selloff and spillover into equities and energy. Hanke predicts the 10-year could rise another ~50 basis points, while maintaining the dollar’s reserve-currency status despite debates about de-dollarization. The piece notes Fortune used generative AI for research.