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Feb 17, 2026
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SHORT
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Davis states, "As we approach 3.90 [on the 10-year], we go more and more underweight." Koesterich says, "I would be cautious about this rally in the 10-year, particularly as we get down to 4%." The market is pricing in aggressive cuts and a flight to safety that contradicts the reality of supply issuance and persistent inflation floors. Davis argues yields below 4% are not sustainable without a crash, making this a selling opportunity. SHORT duration at these levels. A geopolitical shock or rapid recession could force yields lower (flight to quality). |
Bloomberg Markets
Bloomberg Surveillance 2/17/2026...
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