What if euro-area 10-year yields surge 280bp and crush bank bond portfolios?
Euro-area 10y sovereign yields jump roughly 280bp in line with the EBA 2023 adverse rate path, inflicting heavy duration losses on bank and insurer bond portfolios.
how we built this number — every step
The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.
The butterfly cascade
How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.
Resolution timeline — how this probability is moving
Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 6–18 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.
What it would mean
If this plays out, it is a risk-off shock. Euro-area 10y sovereign yields jump roughly 280bp in line with the EBA 2023 adverse rate path, inflicting heavy duration losses on bank and insurer bond portfolios. The trigger decomposes into signed root‑shocks — Credit spreads ▲ · Financial conditions ▲ · Real yields ▲ · Risk appetite ▼ — which propagate through our causal graph to the markets below.
If it happens — the markets it would move
Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.
| Market | Class | Projected move | |
|---|---|---|---|
| 1 | MicroStrategy MSTRon Hyperliquid 📈 chart | Equity | ▼ -1.9% hist -5.13–+0.65% · other way +27.47% (n=12) |
| 2 | Solana SOLon Hyperliquid 📈 chart | Crypto | ▼ -1.3% hist -13.23–+0.55% · other way -1.04% (n=11) |
| 3 | Tech sector XLK 📈 chart | Equity | ▼ -1.3% hist -0.88–-0.25% · other way +0.09% (n=12) |
| 4 | Nasdaq 100 NDXon Hyperliquid 📈 chart | Index | ▼ -1.2% hist -1.3–-0.18% · other way +0.06% (n=12) |
| 5 | Bitcoin BTCon Hyperliquid 📈 chart | Crypto | ▼ -1.1% hist -4.46–+1.06% · other way +6.05% (n=11) |
| 6 | Ether ETHon Hyperliquid 📈 chart | Crypto | ▼ -0.9% hist -9.4–+1.8% · other way +4.87% (n=11) |
| 7 | Hyperliquid (HYPE) HYPEon Hyperliquid | Crypto | ▼ -0.8% model prior · unmeasured |
| 8 | S&P 500 SPXon Hyperliquid 📈 chart | Index | ▼ -0.7% hist -0.62–-0.19% · other way +0.04% (n=12) |
| 9 | Volatility (VIX) VIXon Hyperliquid 📈 chart | Vol | ▲ +0.7% hist -1.69–+4.31% · other way -0.58% (n=12) |
| 10 | High-yield credit HYG 📈 chart | Rate | ▼ -0.7% hist -0.69–-0.08% · other way -0.28% (n=12) |
| 11 | 30y Treasury yield DGS30 📈 chart | Rate | ▲ +7bp hist -6.88–+6.03% · other way +8.8% (n=12) |
| 12 | Coinbase COINon Hyperliquid 📈 chart | Equity | ▼ -0.7% hist -4.27–+1.34% · other way +21.75% (n=11) |
| 13 | 10y Treasury yield DGS10 📈 chart | Rate | ▲ +6bp hist -7.98–+7.77% · other way +9.1% (n=12) |
| 14 | Gold XAUon Hyperliquid 📈 chart | Commodity | ▼ -0.6% hist -0.42–+0.51% · other way +0.37% (n=12) |
Probable recommendation
Historical precedent — what analogous events actually did
Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.
| Asset | History says | Abnormal (20d · 5d) | Hit | n | Confidence | vs cascade |
|---|---|---|---|---|---|---|
| SOL SOL | SHORT | -10.0% · 5d -7.8% | 83% | 20 | 0.42 | ✓ matches cascade |
| ARM ARM | SHORT | -6.2% · 5d -5.8% | 71% | 17 | 0.29 | ✓ matches cascade |
| XHB XHB | SHORT | -1.0% · 5d -0.1% | 67% | 36 | 0.29 | ✓ matches cascade |
| ETH ETH | SHORT | -7.8% · 5d -5.6% | 70% | 20 | 0.27 | ✓ matches cascade |
| High-yield credit HYG | SHORT | -0.3% · 5d +0.0% ↺ fades | 66% | 35 | 0.26 | ✓ matches cascade |
| MSTR MSTR | SHORT | -3.8% · 5d -3.3% | 65% | 37 | 0.25 | ✓ matches cascade |
| Gold XAU | LONG | +0.7% · 5d +0.2% | 61% | 37 | 0.20 | ⚠ differs |
| HOOD HOOD | SHORT | -0.8% · 5d -3.2% | 61% | 20 | 0.18 | ✓ matches cascade |
| 30y yield DGS30 | SHORT | -10bp · 5d -3bp | 59% | 40 | 0.16 | ⚠ differs |
| SMH SMH | LONG | +1.2% · 5d -0.9% ↺ fades | 60% | 37 | 0.16 | ⚠ differs |
| Bitcoin BTC | SHORT | -3.6% · 5d -2.1% | 60% | 21 | 0.15 | ✓ matches cascade |
| COIN COIN | SHORT | -3.7% · 5d +1.5% ↺ fades | 57% | 20 | 0.12 | ✓ matches cascade |
| ASML ASML | SHORT | -2.2% · 5d -3.0% | 58% | 37 | 0.12 | ✓ matches cascade |
| XLF XLF | LONG | +0.1% · 5d -1.0% ↺ fades | 56% | 37 | 0.11 | ⚠ differs |