In recent days, these spreads have been increasing at the fastest rate since the March 2023 Regional Banking Crisis.

At that time, the collapse of three mid-sized U.S. banks led to a broader market sell-off and forced the Fed to step in.

A similar rise in yields occurred during the 2022 bear market when the S&P 500 dropped 25%.

Now, spreads are rising again as the Yen carry trade unwinds.

Bond markets are behaving as if we’re in the midst of a crisis.