US Treasury yields have risen across the curve, with the move driven by government borrowing plans, Federal Reserve signaling, geopolitical uncertainty and changing demand from traditional bond buyers, Mohamed El-Erian said. He argued that the increase reflects fundamentals that have been visible for some time rather than a sudden market shock. The one-year yield reached a 25-month high, the two-year yield a 28-month high, and the five-year, 10-year and 30-year yields 19-year highs. The 20-year yield reached a 22-year high. Market observers, including Bull Theory, have compared the 10-year yield with July 2007, when it last reached a similar level. The global financial crisis began three months after that peak, followed by a 56% Nasdaq decline over the next 16 months. El-Erian attributed the intensity of the market response to psychological anchoring, or investor expectations shaped by more than a decade of artificially low yields after the 2008 Global Financial Crisis. At the latest check, the 30-year Treasury yielded 5.43%, the 10-year 5.13% and the two-year 4.88%. The S&P 500 was up 12.36% year-to-date, the Nasdaq Composite 15.93% and the Dow Jones about 7%. On Wednesday, SPY fell 0.72% to $767.81, QQQ declined 0.84% to $741.21 and DIA dropped 0.71% to $514.30. In Thursday premarket trading, SPY was down about 0.56%, QQQ about 1% and DIA 0.28%.