datoid

The 10-year Treasury yield jumped to 8.28% on April 14, 1987, representing a 4.7 standard deviation move above its 60-day average of 7.29%. This marks a sharp 99 basis point increase from 7.29% just two weeks prior. The spike coincides with record-low unemployment at 4.30% and rising inflation pressures, with CPI up 1.8% over three months. GDP growth of 1.4% suggests an economy potentially overheating, forcing bond investors to demand higher yields as compensation for inflation risk. This dramatic yield movement reflects classic late-cycle dynamics where tight labor markets and growth momentum create inflationary concerns that overwhelm bond markets.