Bonds Collapse After Fed Hike - Bitcoin Rebounds & Fights Off News!

Fed Day triggered a volatile market response, with an initial rally following the 25-basis-point rate hike quickly collapsing as the tone proved hawkish. The bond market remains the primary source of instability, as the 10-year Treasury closed on new lows, signaling that interest rate hikes are failing to curb borrowing costs. Widespread attempts to play the contrarian by buying bonds are backfiring, trapping investors in a losing trade. While the stock market shows some resilience, the persistent weakness in bonds suggests systemic risk. If the government eventually intervenes with quantitative easing to support the bond market, a failure of asset prices to rally in response would indicate a critical breakdown in market health. Investors should prioritize monitoring bond market action over stock performance to gauge the true direction of the economy.