Bond Yields are Accelerating. How this will Affect the Stock and Real Estate Market
Podcasts > Your Personal Bank with Ferenc Toth
Monday, October 5, 2026
The 30-year treasury surged to over 5.5%, the highest level since 2004.
The 10-year treasury exceeded 5.25%, the highest since 2007.
The federal government debt is over $40T and is adding about $2T of debt per year. This is the primary reason why bond yields have been rising since 2022. It will likely continue to increase in the future.
Rising bond yields are making equities less attractive. The extra return stocks typically offer over bonds is near multi-decade lows.
At the same time the S&P 500 is near all-time highs, yet about half of the stocks are declining. The 10 largest companies account for about 40% of the S&P 500. A few massive companies are making the market look much stronger than many stocks are.
The 30-year fixed mortgage hit about 7.5% recently. This increases the cost of a mortgage about 40%.
The average cost to buy a house is about $1,000 per month higher than rent. This is the highest on record.
These are massive economic changes.
Fixed index annuities and high cash value life policies thrive in higher interest rates. They are some of the best financial tools to obtain strong upside gains while eliminating downside market risk.
This is the "Golden Era" of fixed assets. We are experiencing the highest returns in decades. This will likely continue.
