US Treasuries2026-10-06 05:11:00Citadel Securities says Treasury sell-off reflects strong U.S. growth and AI-driven capital demandU.S. Treasuries have come under selling pressure, sending yields to levels not seen in decades. Citadel Securities argues the move is not mainly a story of worsening inflation expectations. Instead, the firm says stronger U.S. economic growth, fiscal spending, and heavy investment tied to artificial intelligence are increasing demand for capital. In a client note issued Monday, Nohshad Shah, head of fixed income sales for Europe, the Middle East and Africa at Citadel Securities, said nearly all of the rise in the U.S. 10-year Treasury yield in September came from higher real yields, while inflation expectations remained relatively stable. Real yields refer to bond returns after inflation. Shah said higher real yields point to a U.S. economy supported by fiscal easing, loose financial conditions, and large-scale AI investment. For the Treasury market, that suggests higher yields are not simply an inflation narrative. If the U.S. economy stays resilient and both government deficits and AI investment remain elevated, investors may demand higher real returns to provide capital, leaving Treasury yields exposed to further repricing.10
Barclays2026-08-28 11:48:43Barclays: Global Bonds Still Not Cheap Enough to Buy After SelloffBarclays said on Aug. 28 that global bonds, despite a sustained selloff, are still not cheap enough to attract buyers. Sticky inflation and governments' reluctance to cut spending continue to weigh on the market, while the forces pushing yields higher have not yet fully played out.850
