Sep 30, 2026, 9:32 AMFixed Income
Bianco Turns Bullish on Treasury Notes as Yields Reach 5.25%
Bianco turns bullish on U.S. Treasury notes as 5.25% yields offer a cushion, saying 5% bond and 6% stock returns are now more realistic for investors.
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Summary
Bianco, who had criticized Treasury bonds since 2020, now sees value in U.S. Treasury notes because 5.25% yields provide what he calls a substantial cushion. The view was reported by MarketWatch on September 30, 2026.
Bianco argues that artificially low interest rates distorted investors’ return expectations and that 5% bond returns and 6% stock returns are more realistic. The available feed summary provides no details on preferred maturities, duration, inflation assumptions, portfolio allocations, or the conditions that could reverse his bullish view.
Positives
- 5.25% Treasury yields provide the income cushion behind Bianco’s newly bullish view.
- 5% bond returns are described as realistic, supporting renewed interest in fixed income.
- U.S. Treasury notes now offer value in Bianco’s assessment after years of criticism beginning in 2020.
Risks & concerns
- Artificially low interest rates distorted the return expectations investors became accustomed to, according to Bianco.
- 6% stock returns are presented as more realistic, implying restrained expectations for equities.
- The limited feed summary provides no maturity, duration, inflation, allocation, or downside analysis for the Treasury view.
Primary sourceMarketWatch.com - Top Storieshttps://www.marketwatch.com/story/hes-been-badmouthing-treasury-bonds-since-2020-but-now-the-big-fat-cushion-of-5-25-yields-is-turning-this-strategist-bullish-376fafba?mod=mw_rss_topstories
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