U.S. Bonds Are Trading Like an Emerging Market with Liz Thomas

Treasury yields are spiking to levels last seen in 2022, but AI-driven capex is masking the risk for equities and financials.

• Historic bond moves: 10-year and 5-year Treasury yields jumped 20bps in two days; the 5-year and average Treasury yield both broke above 5% for the first time since the 2022 hiking cycle when inflation topped 9%.
• Balance by extremes: Thomas is overweight AI/semis/software on one side while holding 10-year Treasuries, gold, and commodities on the other as inflation hedges, with little in the middle.

Themes, sentiment and reasons are AI-written paraphrases, checked so they never quote an episode. They may contain errors. Not investment advice. Episodes remain the property of their creators.