Bloomberg Surveillance · Tuesday, August 11, 2026
Marvin Low of State Street identifies 5% on the ten-year Treasury as a significant level, indicating market concern that policymakers are not taking inflation seriously enough. He suggests that if real yields reach 125-150 basis points, it could temper enthusiasm for long-duration assets.
“When do. You see long ends reach the long end of the yield curve reaching a point where it does constrain some of the enthusiasm that we're seeing inequities and frankly, the ambitious capital expenditures that we're seeing from AI and frankly even other companies as well.”
“Yeah, so, you know, five percent on the ten years always kind of that magic number that we're looking at if it's driven by real yields, you know, certainly getting real yields into this one hundred and twenty five hundred and fifty basis point range. You know, we're we're closer to you know, eighty if you will perspective from a term premium a viewpoint that really starts to I think tamper the enthusiasm of how much you can throw at these long duration models.”