AI Circle Daily
https://aicircle.news/archive/2026-09-19?category=finance&lang=en
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The 10-year yield hit 5.04%, the highest since 2007, after the Fed hiked for the first time in three years with inflation still sticky.
Take: This is the anchor for everything. A 5%+ risk-free rate caps equity multiples and squeezes duration-heavy growth and private credit — the elevated redemption requests at Morgan Stanley's private credit fund are the same trade, different seat.
Fed Chair Kevin Warsh explained this week's hike but left markets guessing how far the tightening cycle goes.
Take: A new chair wasting no time resetting expectations. If he's serious about pushing rates past 4%, the dollar and front-end yields keep grinding higher, and EM outflow pressure has barely started. Don't bank on a dovish pivot.