Citadel Says Fed Policy Is Driving 30-Year Treasury Yield to 19-Year High, Raising Market Risk
JH Kim
Summary
- Citadel Securities said the Federal Reserve’s policy stance has pushed the 30-year US Treasury yield to its highest level in decades, increasing risk across financial markets.
- Citadel Securities said the 30-year US Treasury yield rose above 5.28%, the highest in 19 years, despite a recent slowdown in inflation and employment data.
- Citadel Securities said lingering inflation pressures mean the Fed’s next rate decision will require careful judgment, while also citing Microsoft (MSFT) and Alphabet (GOOGL).
Forecast Trend Report by Period
The Federal Reserve’s policy stance is pushing long-dated Treasury yields to their highest levels in decades, increasing risk across financial markets, Citadel Securities said.
Walter Bloomberg reported on August 17 that the yield on the 30-year US Treasury rose above 5.28%, the highest in 19 years, even as recent inflation and employment data showed signs of cooling.
Citadel Securities said the Fed’s next rate decision will require careful judgment because inflation pressures remain.
In artificial intelligence, the firm said it prefers cloud infrastructure providers and hyperscalers over developers of cutting-edge AI models, citing Microsoft (MSFT) and Alphabet (GOOGL).
JH Kim
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