Here's what happens to the economy when Treasury yields soar like they are now

Why it matters

TLT (20+ Year Treasury) · Why linked: Rising Treasury yields directly push down long-duration Treasury bond prices, and TLT is the most direct tradable proxy. Market context: Rising yields erode the principal value of long-duration Treasuries, putting downward pressure on TLT.

SPY (SPDR S&P 500 ETF) · Why linked: Spiking government debt costs tighten financial conditions and pressure equity valuations, especially for high-multiple growth names. Market context: Higher discount rates from rising yields typically compress equity valuations, creating headwinds for broad equities like SPY.