Bond Market Breakdown Triggers Next Crash, Schiff Warns

Peter Schiff is warning that the next major market crash will be triggered by a breakdown in bond markets, not cryptocurrency volatility. The 10-year Treasury yield has climbed to nearly 4.5% and the 30-year yield approaches 5%, levels that can squeeze stocks, housing, and cryptocurrencies alike.

Schiff's argument is based on the idea that rising US Treasury yields will strain the entire financial system's cost structure, affecting what consumers and corporations pay to borrow. This, in turn, can crack the foundations of a market crash tied to bonds rather than cryptocurrency speculation.

The average 30-year mortgage rate has reached 6.49%, making it difficult for many buyers to qualify or afford monthly payments. This situation could lead to a housing slump that forces the Federal Reserve's hand, prompting intervention in the form of rate cuts and balance sheet expansion.