RE:What breaks?These guys at Harvest really do not understand interest rates and are just marketing the high yields like all the me too CC ETFs.
When the Central Banks lower interest rates it really only affects the Short Term rates.
The longer date rates follow the Bond markets which are controlled by the Bond buyers and sellers.
Short Term rates < Long Term Rates for the financial system to work
So long rates have to go up some more or Short term down to hit the average. Since interest rates are up many Large Bond holders are under water and have been reducing exposure on rally, to redploy $$$ elsewhere.
10-2 Year Treasury Yield Spread is at 0.10%, compared to 0.12% the previous market day and -0.45% last year. This is lower than the long term average of 0.86%.
https://ycharts.com/indicators/10_2_year_treasury_yield_spread