CITIC: Fed rate path won’t decide bond yields or stock direction

CITIC's stance reframes the bond selloff as a structural shift tied to AI-era demand for risk assets, rather than a tactical reaction to Fed policy. This matters because it challenges the conventional linkage between central bank moves and long-duration yields, suggesting markets may be pricing a new equilibrium where safe-haven demand structurally declines. For cross-asset observers, the key is whether this logic holds if economic data deteriorates, as it would test the resilience of the AI-driven risk appetite narrative. The open question is whether the bond market's repricing is a durable regime change or a cyclical overshoot.