Fidelis Capital says 10-year US Treasury yield breaks above 5% for first time since 2007
TLT•Fidelis Capital flagged renewed fixed-income volatility as the 10-year US Treasury yield moved above 5% for the first time since early 2007. Corporate bond spreads remained contained, while the Treasury market had $31.8 trillion in outstanding debt as of early September.
1. Treasury yields rise
Fidelis Capital flagged renewed fixed-income volatility as the 10-year US Treasury yield broke above 5% for the first time since early 2007. The US Treasury market had $31.8 trillion in outstanding debt as of early September, while corporate bond spreads stayed contained despite the Treasury selloff.
2. Portfolio approach
The brief said the 2-year Treasury yield neared 5% in 2026 as markets priced a tighter Federal Reserve path, including odds of rate hikes in October and December. Fidelis favored active bond management, tax-loss harvesting and higher-quality credits, and expected institutional buying as quarter-end approached.
