Bloomberg Surveillance · Wednesday, August 26, 2026
Vishal Kanduja from Morgan Stanley Investment Management suggested that the Treasury may have reached a 'pain threshold' regarding current yield levels. He noted that the Treasury Secretary seems to be taking center stage, with expectations of a deficit reduction plan in the coming weeks. Kanduja believes higher yields could be adding to deficits.
“But they say that they're going to have something for us in the next two weeks.”
“Things that have changed is now you have clearly gone out of your way to come out, surprise the market, and then give us a little bit more information that this is some sort of a pain threshold has been reached.”
“Either it is the curve shape, it is absolute level of yields, or it is a worry that these higher yields are going to add to deficits even more.”