Everyone wants to catch the falling knife in the bond market

Bond yields are the overwhelming focus; the 10-year breached 5.3% and most writers see fiscal deficits, heavy issuance, and AI capex driving yields structurally higher.

Inflation is considered persistent, with core PCE above 3% and the Fed missing its target for 66 months.

Equity market internals are deteriorating sharply — record index highs are being built on narrow mega-cap leadership, a classic late-cycle signal.