Global Bond Slump Raises Fed Questions | Bloomberg Businessweek Daily 8/18/2026

Watch on YouTube ↗  |  August 18, 2026 at 22:10  |  49:00  |  Bloomberg Markets
Speakers
Ira Jersey — Bloomberg Intelligence Chief US Interest Rate Strategist
Davide Barbuscia — Corporate Finance Reporter, Bloomberg News
Marta Norton — Chief Investment Strategist, Empower
Shehzad Qazi — COO, China Beige Book
Alex Timm — Co-founder and CEO, Root
Amy Morris — Anchor/Reporter, Bloomberg
Norah Mulinda — Market Reporter, Bloomberg

Summary

The video covers the global bond slump and rising long-term yields, with Bloomberg's Ira Jersey and Davide Barbuscia explaining competition from Japanese bonds, fiscal worries, AI-driven corporate debt issuance, and Fed communication uncertainty under Kevin Warsh. Marta Norton discusses retirement allocation in a higher-rate world, seeing fixed income value in a growth scare and healthcare appeal for diversification. The program also covers Shehzad Qazi's outlook on the Xi-Trump summit and selective China opportunities, plus Root CEO Alex Timm's defense of the company's disciplined growth and AI-based insurance data strategy.

  • Long-term Treasury yields rise as global developed-market bonds compete and fiscal risks mount.
  • AI-financed corporate debt issuance adds supply and pressures investment-grade spreads.
  • Fed communication uncertainty under Chair Kevin Warsh adds risk premiums.
  • Retirement investors are skittish about bonds but fixed income may still deserve a portfolio role.
  • Healthcare is highlighted as a diversifier away from AI supply-chain exposure.
  • Xi-Trump summit expectations are low; managed trade may be the main deliverable.
  • China's economy is weak but state capacity remains deep; selective Hong Kong IPO opportunities exist.
  • Root reports strong ROE and disciplined growth despite competitive auto insurance conditions.
Ideas
Ira Jersey Bloomberg Intelligence Chief US Interest Rate Strategist 5:19
Long-term Treasuries face higher yields.
Long-term U.S. Treasury yields are rising because global developed-market government bonds are highly correlated and competing for demand; hedged Japanese government bonds now yield more than Treasuries, and fiscal worries in Japan, Germany, and the UK are reducing bond buying, forcing governments to offer higher yields.
30-year U.S. Treasuries HIGH
Davide Barbuscia Corporate Finance Reporter, Bloomberg News 6:24
AI debt wave pressures corporate bonds.
An unprecedented wave of long-end corporate debt issuance tied to AI financing is creating heavy supply and competing with long-end Treasuries; corporate bond investors are demanding higher spreads, and investment-grade bonds are trading with junk-level yields as risk premiums rise.
LQD HIGH
Marta Norton Chief Investment Strategist, Empower 14:56
Fixed income retains value in growth scare.
Retirement savers are skittish about bonds after 2022 and lingering inflation, but if a true growth scare hits, fixed income still has value as the capital-preservation portion of a portfolio; abandoning the entire bond allocation would be reactionary.
TLT MED
Marta Norton Chief Investment Strategist, Empower 17:28
Healthcare is appealing diversification play.
AI exposure is spread through IT, small caps, and industrials rather than contained in one sector, so investors looking for diversification should consider areas less dependent on the AI supply chain; health care has particular appeal in this environment.
XLV HIGH
Shehzad Qazi COO, China Beige Book 30:55
Hong Kong IPOs offer selective opportunity.
Investors who align with companies the Chinese state is favoring can make money, especially through the current wave of Hong Kong IPOs, but selectivity is critical because the state decides winners and companies like Alibaba have been punished.
Hong Kong IPO market MED
Alex Timm Co-founder and CEO, Root 35:23
Root stock attractive on disciplined growth.
Root delivered a strong quarter with over 30% annualized return on equity, has disciplined growth in a competitive environment, is scaling nationally with applications in 11 states, and is growing partnerships and embedded insurance; its behavior-based and autonomous-vehicle data strategy differentiates its risk pricing.
ROOT HIGH
Up Next
44:15
Crypto CEOs, Surviving Crypto Winter | Bloomberg Crypto 8/18/2026
Bloomberg Markets · Aug 18
8:07
Long-Term Debt Costs Soar to Highest in Decades as Bonds Slump
Bloomberg Markets · Aug 18
7:48
Texas Has 'No Real Protections' Against Data Center Impact, Says Gina Hinojosa
Bloomberg Markets · Aug 18
15:29
Trump Will Have to Make 'Bad Deal' With Iran, Says Former National Security Advisor Jake Sullivan
Bloomberg Markets · Aug 18
10:10
What to Expect When China's Xi Goes to Washington Next Month
Bloomberg Markets · Aug 18

This Bloomberg Markets video, published August 18, 2026, features Ira Jersey, Davide Barbuscia, Marta Norton, Shehzad Qazi, Alex Timm discussing 30-year U.S. Treasuries, LQD, TLT, XLV, Hong Kong IPO market, ROOT. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Ira Jersey, Davide Barbuscia, Marta Norton, Shehzad Qazi, Alex Timm  · Tickers: 30-year U.S. Treasuries, LQD, TLT, XLV, Hong Kong IPO market, ROOT