Stocks Fall as Traders See Fed Hike by October | The Close 6/17/2026

Watch on YouTube ↗  |  June 17, 2026 at 21:51  |  54:46  |  Bloomberg Markets
Speakers
Ken Shinoda — Portfolio Manager, Doubleline Capital
Michael Ball — Former NY Fed / Market Commentator
Kelly Burton — High Yield Portfolio Manager, Barings
Sheila Bair — Former FDIC Chair

Summary

The first FOMC meeting under new Fed Chair Kevin Warsh delivered a hawkish hold, triggering a broad selloff in stocks and a sharp rise in short-end Treasury yields. Warsh emphasized price stability, announced five task forces to review Fed practices, and scaled back forward guidance. Traders priced in a rate hike by October, while guests offered trade ideas on Treasuries, front-end credit, yield curve flattening, and high-yield bonds—including AI-related credit.

  • Fed holds rates steady; Warsh's first meeting as Chair
  • Hawkish tilt with focus on price stability and reduced forward guidance
  • S&P 500 down 1.3%, broadest selloff of the year
  • Two-year Treasury yield surges 16 basis points, curve flattens
  • Markets price in a 25bp rate hike by October
  • Ken Shinoda views two-year selloff as overreaction, a buy
  • Michael Ball expects further yield curve flattening
  • Kelly Burton sees attractive opportunities in high-yield and AI-related bonds
Ideas
Ken Shinoda Portfolio Manager, Doubleline Capital 4:13
Two-year Treasury overreacted, yields likely fall.
The two-year Treasury selloff was an overreaction driven by speculative longs expecting a more dovish Fed. The yield is likely to settle down another 10bp, closer to 4%, making the two-year a buy.
U.S. 2-Year Treasury Note MED
Ken Shinoda Portfolio Manager, Doubleline Capital 6:18
Front-end IG credit offers attractive carry.
In a higher-but-stable rate environment with a flat curve, short-term floating-rate and fixed-rate securities offer attractive extra yield and carry while taking only a little investment-grade credit risk, yielding 5.5%-6% over Treasuries.
ICSH MED
Michael Ball Former NY Fed / Market Commentator 13:00
Yield curve flattening likely to continue.
Chairman Warsh needed to establish credibility and the market will question the need for more than one rate hike this year. Further yield curve flattening is likely as short-end rates adjust to a hawkish Fed.
US 2s/10s Yield Curve Flattener MED
Kelly Burton High Yield Portfolio Manager, Barings 46:01
High yield structurally healthy, yields attractive.
High-yield market is structurally healthier than historical spread levels suggest. Adjusted for today's ratings composition, short duration, and record secured bonds, spreads are not tight. Yields remain elevated at 6-8% for BB/B credits, offering attractive income.
HYG MED
Kelly Burton High Yield Portfolio Manager, Barings 48:37
AI high-yield bonds are investable opportunity.
AI-related high-yield bonds represent a nascent but rapidly growing opportunity, currently 2.5% of the market but could double by year-end. Strong underwriting with take-or-pay agreements and counterparties makes it an investable opportunity.
AI-related High Yield Bonds MED
Up Next
19:17
FED QUER MUDAR TUDO: JUROS, INFLAÇÃO E EMPREGO
Fernando Ulrich · Jun 17
2:57:36
LIVE: FOMC RIGHT NOW!!! SpaceX Is DUMPING..? Hyperliquid Is COOKING! WAR IS OVER!!!!!!!!!!! #LIT
Thread Guy · Jun 17
4:14
Consumers are doing well in navigating the current economic environment, says Mastercard's Meyer
CNBC · Jun 17
33:08
Fed Holds Rates Steady As Warsh Takes Helm: Fed Special
Bloomberg Markets · Jun 17
53:06
Are Rate Cuts Dead?
1000x Podcast · Jun 17

This Bloomberg Markets video, published June 17, 2026, features Ken Shinoda, Michael Ball, Kelly Burton discussing U.S. 2-Year Treasury Note, ICSH, US 2s/10s Yield Curve Flattener, HYG, AI-related High Yield Bonds. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Ken Shinoda, Michael Ball, Kelly Burton  · Tickers: U.S. 2-Year Treasury Note, ICSH, US 2s/10s Yield Curve Flattener, HYG, AI-related High Yield Bonds