Jim Bianco Turns Bullish on Treasuries as Benchmark Yields Top 5%

Strategist Jim Bianco has reversed his multi-year bearish stance on U.S. Treasuries, turning bullish as benchmark yields top 5%. Bianco cited a substantial income cushion against downside risks, arguing that concerns over inflation, fiscal deficits, and sovereign debt are largely priced in. The pivot followed a surge in the 10-year Treasury yield to a high of 5.27%, its highest level since 2007. In response, Bianco extended the duration of an actively managed index underpinning a WisdomTree ETF to over six years, exceeding the 5.7-year duration of the Bloomberg U.S. Aggregate Bond Index.