AI Circle Daily
https://aicircle.news/archive/2026-09-16?category=finance&lang=en
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The benchmark 10-year yield hit 5.04% Tuesday morning, the highest since July 2007, as inflation fears and Fed hike bets dragged the whole curve higher.
Take: 5% is both a psychological line and a valuation guillotine — equity risk premia are getting squeezed to nothing. This is the long end repricing, not just the front end, so duration assets bleed first.
The Fed raised rates 25bp to 3.75%-4.00%, its first hike since July 2023, citing inflation stuck above target, and signaled more to come.
Take: The dot plot is the whole game here — a single hike was priced. What spooks the Street is whether this is the start of a hiking cycle, which would force a rewrite of the easing-hope valuation logic that's carried the last two years.