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Treasury yields hit multi-decade highs, pressuring equities amid persistent inflation and higher rates.

Market News
12 Sep 2026
Seeking Alpha
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Bearish
Treasury yields hit multi-decade highs, pressuring equities amid persistent inflation and higher rates.

Treasury yields have surged to levels not seen in nearly two decades, with the 30-year yield at its highest since 2007 and the 10-year yield approaching 5%. This rise is driven by persistent inflation, particularly from rising energy prices, which challenges expectations for rate cuts or yield relief soon. Central banks, especially the Federal Reserve, are focused on maintaining price stability, signaling a 'higher for longer' interest rate environment. As a result, equities face increased risk with pressured returns due to elevated rates and high valuations, making the risk-reward outlook unfavorable for investors.

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State Street Q3 2026 EPS beats estimates despite revenue falling short

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