The David Lin Report · Friday, September 4, 2026
Economist Steve Hanke predicts that the 10-year Treasury yield could increase by another 50 basis points due to the escalating conflict with Iran and rising oil prices. He attributes this potential rise to several factors, including the rapid growth of the money supply, fiscal deficits driven by war spending, and a perceived loss of credibility by Treasury officials.
“So, I think, the inflation genie is out of the bottle due to this monetary increase. And that means that the yields are going to stay high or go higher. I think there could be another 50 basis point increase in the 10 year and 30 year. So that that puts us really into a red zone, shall we say.”
“And and most people don't realize where that comes from. It comes from the money supply growing at too rapid a rate.”