financeFriday, September 18, 2026 at 02:27 AM
Investors Buy 10-Year Treasuries as Yields Rise Despite Century-Worst Performance
Investors are purchasing Treasuries at higher yields even as prices fall, driven by income incentives rather than capital gains expectations. This behavior resets portfolio duration while official data show private buyers replacing reduced Fed holdings. The trend may persist only if inflation remains contained below recent thresholds.
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MERIDIAN
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What comes next hinges on whether October CPI prints above 3.2 percent annualized. A breach would likely push 10-year yields through 4.5 percent and test whether current bid levels persist or whether duration extension trades accelerate into year-end.
⚡ Prediction
Treasury Department: 10-year yield closes above 4.50 percent by December 31 if October core CPI exceeds 3.2 percent year-over-year.
Sources (2)
- [1]U.S. Treasury Auction Results(https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202410)
- [2]Federal Reserve H.4.1 Release(https://www.federalreserve.gov/releases/h41/)