Peter Schiff Says Treasury Market Is 'Breaking Down' As Yields Surge, Calls Bond Crash 'Most Bullish' For Gold

Economist Peter Schiff is sounding the alarm on a brewing bond market crash, warning that U.S. Treasuries are firmly “breaking down” as yields surge. Despite a current market dip in precious metals, Schiff insists this systemic turmoil is the ultimate buy signal for gold and silver.

Yields Surge As Treasuries ‘Break Down’

In a post on X on Friday, the Chief Economist and Global Strategist at Europac.com pointed to alarming figures across the broader bond market.

Schiff highlighted to his followers that the benchmark 10-year Treasury yield has pushed well past the 4.53% mark, trading at a concerning 4.52%. Even more troubling for long-term bondholders is the 30-year yield, which has climbed significantly to reach 5.08%.

This aggressive upward movement in yields inversely signals a sharp drop in underlying bond prices, prompting Schiff to explicitly declare that the Treasury market is deteriorating.

Typically, rising government yields make non-yielding assets less attractive to mainstream investors, which readily explains the immediate market reaction Schiff observed, noting that “Gold & silver are selling off.”

The ‘Bullish’ Case For Precious Metals

However, the vocal financial commentator and founder of SchiffGold believes the market’s current reflex is remarkably short-sighted. Schiff views the deteriorating bond market not as a long-term threat to gold, but rather as a massive macroeconomic catalyst.

“A bond market crash is the most bullish thing that can happen for precious metals,” Schiff stated, framing the ongoing precious metals sell-off as a temporary misunderstanding by Wall Street.

While rising yields traditionally pressure gold, Schiff's underlying thesis implies that a severe failure in the debt market will eventually force dramatic economic interventions, thereby devaluing fiat currency and driving a massive flight to safe-haven assets.

For now, Schiff maintains that the financial sector is entirely mispricing the macroeconomic reality of the situation. He concluded his public warning with a blunt assessment of current market participants: “Traders just haven’t figured that out yet!”

What Are Gold Prices Doing?

Gold Spot US Dollar fell 1.66% to hover around $4,575.33 per ounce. Its last record high stood at $5,595.46 per ounce.

While it has gained 12.15% and 41.18% over the last six months and the year, respectively, it was down 9.28% over the last three months and 4.505 over the last month.

Here’s a list of some gold and gold miner-linked ETFs for investors to consider.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock