The US bond market is in major trouble today. Just hours after President Trump's "10-day pause" of strikes on Iranian power plants, yields are at their highest level of the Iran War yet. The 10Y Note Yield is up to 4.47% with mortgage rates hitting fresh 7-month highs. In less than one month, markets have gone from discussing rate cuts to rate hikes, with the base case showing a Fed PAUSE for the next 18 months. Keep in mind, the Fed was cutting interest rates because the labor market was weak, and it remains weak. However, inflation expectations have just become an even bigger problem than the labor market. This is objectively unsustainable.(The Kobeissi Letter)