Rates Back On The Rise… And Used Car Market Shifting Into Reverse 10/7/26

Treasury yields near 5% now reflect "normal" fair value per Bianco, while AI-driven debt issuance and rate sensitivity reshape sector winners and losers.

• 10-year yield spikes then fades: Treasury yields hit a 24-year high of 5.36% before a strong 10-year auction (heavy non-dealer/central bank bidding) pulled rates back; Fed minutes showed officials favored one more 2026 hike, though futures price only 17% odds for October vs 82% for December.
• Bianco turns bullish on bonds: Jim Bianco (Bianco Research) says 5-30yr yields near 5% now reflect fair value given ~3% inflation plus ~2% real growth, marking his first bullish bond call in six years; he flags refinancing stress concentrated only in triple-C credits (gaming, leveraged cable, lottery operators).

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.