Wall Street Prices Out Rate Cuts, Eyes Hikes, Global Bond Selloff Deepens | Real Yield 5/15/2026
Speakers
Ed Al-Hussainy
— Portfolio Manager, Total Return Bond
Kay Herr
— JPMorgan Management CIO of US GFICC
Barry Knapp
— Managing Partner, Ironsides Macroeconomics
Summary
The episode covers a global bond selloff with yields surging as markets price out rate cuts and anticipate hikes. A roundtable discusses the attractiveness of long-duration Treasuries, the resilience of hyperscalers, and the state of investment-grade credit. The impact of rising rates on equities and credit spreads is also examined.
- Global bond yields spike, 10-year Treasury reaches 4.58%.
- Market now prices a higher probability of rate hikes than cuts.
- Ed Al-Hussainy favors the long end of the curve for hedging.
- Kay Herr shows a slight preference for the belly of the curve.
- Barry Knapp argues hyperscalers are more resilient than previous tech cycles.
- Investment-grade credit sees strong demand despite higher yields.
- Private credit secondary trading picks up at J.P. Morgan.
- Venezuela begins a large debt restructuring process.
Trade Ideas
Long-duration Treasuries attractive for hedging
The long part of the yield curve is becoming more attractive as a hedge against equity and credit risk, particularly in an environment where central banks are expected to tighten monetary policy. Higher yields on long-duration bonds offer compensation and potential for capital appreciation if rates eventually decline.
Up Next
This Bloomberg Markets video, published May 15, 2026, features Ed Al-Hussainy discussing U.S. long-term Treasuries. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Ed Al-Hussainy · Tickers: U.S. long-term Treasuries