Hartnett: A Democratic Sweep Will Trigger A Stock Market Rout, And Pop The AI Bubble

The biggest story last week was not the unexpectedly hot jobs report which, unfortunately, will be revised sharply lower next month as the labor market reverts to its deteriorating, AI-enhanced, trendline: Instead, what everyone was - or should have been focusing on - was the bottom falling out of the bond market with global yields jumping to the highest level in 2 decades, to wit: 

• 10Y Treasury yields jumping to 4.81%, near 2008 crisis levels
• 30Y Treasury yields jumping to 5.31%, highest since 2007
  
• Japan 10Y JGB  >3.0%    First time since 1996
• Japan 30Y JGB  4.2%, or 4x the BoJ policy rate
  
• German 10Y Bund  3.38%, post-2011 high
• France OAT-Bund spread 88bps, 2012 crisis highs
• Italy BTP-Bund spreads, 84bps, 2012 highs