Hard for Fed to rely on bond market due to U.S. Treasury intervention: Man Group's Kristina Hooper

Kristina Hooper discusses the drivers behind rising long-end Treasury yields, including fiscal unsustainability and foreign investor reluctance. She argues Treasury intervention makes bond market signals harder for the Fed to read. She expects continued upward long-end yield pressure to weigh on long-duration equities, especially technology and AI. Her portfolio implication is diversification including non-U.S. equities with less AI exposure. - Long-end Treasury yields are rising on fiscal unsustainability, war costs, and foreign investor reluctance. - Inflation expectations are not the main driver of long-end yields. - Treasury intervention complicates the Fed's ability to read bond market signals. - Rising long-end yields are expected to pressure long-duration equities. - Technology and AI names are seen as especially vulnerable on revenue and spending concerns. - Non-U.S. equities are favored for diversification and less AI exposure.