---
title: "Bond yields surge as Fed's Warsh faces $6.7T test"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286677538.md"
description: "Bond yields have surged, with the 30-year Treasury exceeding 5% and 10-year yields rising above 4.5%, causing caution in stock markets. New Fed Chair Kevin Warsh faces a critical decision on whether to reduce the Fed's $6.7 trillion balance sheet amid inflation concerns. Additionally, geopolitical tensions, particularly the Iran conflict, are keeping oil prices above $100, which may lead to a new inflation regime."
datetime: "2026-05-17T16:09:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286677538.md)
  - [en](https://longbridge.com/en/news/286677538.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286677538.md)
---

# Bond yields surge as Fed's Warsh faces $6.7T test

Yields hit highs: The 30-year Treasury topped 5% and 10-year yields rose above 4.5%, prompting caution in stock markets. Warsh's policy test: New Fed Chair Kevin Warsh must decide whether to shrink the Fed's $6.7 trillion balance sheet amid inflation risks. Geopolitical inflation risk: The Iran conflict and Strait of Hormuz disruptions keep oil above $100, threatening a new inflation regime.

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