ETFs tracking long-term government bonds continued their strong downward momentum last week as concerns about the US economy rose. TLT, the biggest of them, suffered $122 million in outflows, bringing the year-to-date losses to $3.92 billion. It had added assets in the previous five weeks.These concerns accelerated after the US published the April inflation report, which showed that consumer and producer inflation surged amid the US-Iran war. The headline CPI jumped to 3.8% from the previous month's 3.3%. Similarly, the producer price index jumped to a four-year high of 6.05%. The PPI is often seen as a leading indicator for future inflation since companies often pass price increases to consumers. Therefore, these numbers, together with the recent US jobs numbers, mean that the Federal Reserve will maintain a hawkish tone this year. Polymarket, Kalshi, and the CME FedWatch tool estimate that the Fed will not cut rates, even with Kevin Warsh at the helm. These concerns, together with the rising US government debt, has pushed the 30-year Treasury yield to 5.128%, while the 10-year rose to 4.60%. The two-year yields crossed the important 4% milestone. Analyst Warns About The Bond MarketAt the same time, the rising yields mean that companies and consumers will have higher borrowing costs. This, in turn, may lead to lower equity valuations. In a note, Peter Tuz, the president of Chase Investment Counsel, said: