(Bloomberg) - Long term interest rates in the U.S. have been heading higher. Yields on 10-year Treasury notes have risen almost half a percentage tojust under 4.70% this week. That’s the highest since January 2025. This raises some obvious questions, such as what’s driving the rise and are the reasons mainly cyclical or should they be viewed as systemic and of deeper concern?
In May, Nate Anderson’s firm leveled a series of accusations against Icahn Enterprises, claiming that it was over-leveraged and trading at an excessively steep premium to its net asset value.
Powell stressed in his speech that "given the uncertainties and risks, and how far we have come, the committee is proceeding carefully." That was a sign the central bank would not push rates higher at its next meeting in November.
While Khanduja is eyeing 5% as a decent entry point, he also has a steepener trade among his favored bets. Morgan Stanley Investment is positioned for the yield curve between the two and 10-year bonds to steepen.
