Citadel Securities: Rising US Treasury Yields Reflect Strong Economy, Not Inflation Fears

TREE NEWS reports: Citadel Securities attributes the recent climb in US Treasury yields to strong economic growth and intensifying competition for capital, not heightened inflation worries. Nohshad Shah, the firm’s head of fixed income sales for EMEA, wrote in a Monday client note that nearly all of the rise in the 10-year Treasury yield in September came from real yields, while inflation expectations stayed relatively stable. Real yields are being supported by fiscal easing, loose financial conditions and heavy investment in artificial intelligence, he said.