Bond selloff is opening up rare opportunities for investors. Here is where to look, says major bank. Bond arithmetic suggests losses lower than 1% if the 10-year’s yield climbs to 6% and gains of over 10% if it declines to 4.5%, strategist says.
For Standard Chartered's global chief investment office, bond and money markets are overly hawkish on the Federal Reserve. The rising yield on the 10-year U.S. Treasury has created a strong opportunity for investors with a six- to 12-month horizon, according to a major British bank.
Since the beginning of September, the U.S. bond market has faced a historic selloff on concerns over high inflation, with the 10-year’s yield hovering around the 5.269% level early Monday after reaching a high last week not seen since 2002. The yield on the 30-year note lingered at the 5.626% mark, also having reached a 24-year high on Thursday. Rajat Bhattacharya, senior investment strategist at Standard Chartered’s global chief investment office, wrote in a recent report that bond arithmetic suggests losses lower than 1% if the 10-year’s yield climbs to 6% and gains of over 10% if it declines to 4.5%, he said.
For Bhattacharya, both bond and money markets are overly hawkish on the Federal Reserve. The bank expects disinflation to return as the impacts of oil prices and tariffs begin to ease in the new year. Don’t Short Yourself offers weekly money tips to help you earn it, stack it and grow it.
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Given the current economic backdrop, the office recommends quality companies and industries benefitting from the current artificial-intelligence cycle. It said U.S. large-capitalization companies have broadly absorbed the climb in bond yields well and are also supported by forecasts of strong earnings growth driven by investment related to AI. Copyright ©2026 MarketWatch, Inc.
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