What Happened?

A number of stocks fell in the afternoon session after the May jobs report drove Treasury yields to levels that directly challenge the sector’s business model. 

The 10-year yield rose above 4.5% and the 30-year climbed above 5%, thresholds that increase mark-to-market pressure on bond portfolios at asset managers and raise the hurdle rate for new private credit and infrastructure fund deployment. 

For firms like Blackstone, KKR, and Ares, a 30-year above 5% complicates the economics of long-duration deals, reduces the relative appeal of illiquid alternatives versus risk-free income, and slows deployment pipelines. CME FedWatch’s shift toward pricing rate hike risk by year end also challenged the recovery in M&A and…