What’s Driving Treasury Yields Higher?
AI-related debt issuance has surpassed $500 billion in 2026 alone, adding to supply pressures in bond markets already contending with a nearly $2.0 trillion U.S. budget deficit. This week, Maggie Lucier joins Kevin Flanagan to discuss what is keeping Treasury yields elevated, the impact of Fed uncertainty and why Kevin favors a zero-duration approach to managing interest rate risk.
Basis point: 1/100th of 1 percent.
Agg: Refers to the Bloomberg U.S. Aggregate Bond Index.
“Double A issuer”: Refers to an issuer with an “AA” credit rating from a major credit rating agency
Learn more…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.