Pressures Building Towards Higher Bond Yields, Julian Emanuel Says

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00:00What do you make of the yields rising this morning?

00:03Look, the first thing is we have to step back and understand something,

00:07that bond market cycles are very long-legged things. And the 40-year bond bull market ended

00:14at the pandemic lows in 2020. And when you think of, Anne-Marie, you just detailed all of the

00:21reasons that yields are going higher. And the answer is yes to every single one of them.

00:25You put it together, and in our mind, if you think about it, it's almost remarkable

00:30that the confluence of the U.S. being the premier destination for capital has actually caused

00:38spreads against global bond markets to compress. If you had said to me Japanese 10-year yields were

00:46going to be close to 2%, I would have told you at the beginning of the year that U.S. 10-year yields

00:51would be close to 5%. And we're not there. But all of these pressures are building in our mind

00:58towards higher yields.