Basis Points

Treasuries are drawing safe-haven demand as AI-related stocks sell off, but the forces keeping yields elevated haven’t gone away. This week on Basis Points, Kevin Flanagan and Maggie Lucier discuss how solid growth, sticky inflation, a less predictable Fed and heavy Treasury and AI-related debt supply could limit the rally, and why those competing pressures point to a higher trading range for the 10-year Treasury yield.

Basis point: 1/100th of 1 percent.

The Consumer Price Index (CPI): Presents the percentage change in prices that consumers pay for goods and services.

The Producer Price Index (PPI): Measures changes in wholesale prices, offering insights into inflation trends before they reach consumers.

Personal consumption expenditures (PCE): The value of goods and services purchased by or for U.S. consumers.

Learn more: https://www.wisdomtree.com/us/insights/podcasts/basis-points-podcasts

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/us/insights/glossary

The Fed held rates steady at the October FOMC meeting, but another increase in December remains in play if growth stays solid and inflation remains above target. On the Basis Points podcast, Kevin Flanagan explains why policymakers may take a deliberate, data dependent approach, what recent comments from the Fed’s “Big Three” suggest, and why the latest Treasury rally may not change the forces behind higher longer dated yields.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/us/insights/podcasts/basis-points-podcasts

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/us/insights/glossary

Growth, sticky inflation, policy uncertainty and Treasury supply have pushed long-term yields to multi-decade highs. On this week’s episode of the Basis Points podcast, Kevin Flanagan outlines a barbell approach for investing in a “5% bond world.”

Basis point: 1/100th of 1 percent.

Consumer Price Index (CPI): Measures the average monthly change in prices paid by urban consumers for a market basket of consumer goods and services.

Producer Price Index (PPI): Measures changes in wholesale prices, offering insights into inflation trends before they reach consumers.

Funds mentioned in podcast:

USFR: WisdomTree Floating Rate Treasury Fund

AGZD: WisdomTree Interest Rate Hedged U.S. Aggregate Bond Fund

HYZD: WisdomTree Interest Rate Hedged High Yield Bond Fund

AGGY: WisdomTree Yield Enhanced U.S. Aggregate Bond Fund

WTBN: WisdomTree Bianco Total Return Fund

Learn more: https://www.wisdomtree.com/us/insights/podcasts/basis-points-podcasts

Learn more about the WisdomTree Zero Duration Suite: https://www.wisdomtree.com/us/strategies/fixed-income

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/us/insights/glossary

The 10-year U.S. Treasury yield reached 5.36%, its highest level in 20 years, amid a mix of growth, inflation, policy uncertainty and supply pressures. This week on the Basis Points podcast, Kevin Flanagan and Maggie Lucier review the case for zero-duration strategies and how they could fit into bond portfolios as investors consider taking on longer-duration exposure.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/us/insights/podcasts/basis-points-podcasts

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/us/insights/glossary

The 10-year Treasury yield hit a 19-year high of 5.2% last week, and it isn't alone: Japan, Germany and the UK have all seen their 10-year yields climb to multi-decade highs. This week on Basis Points, Maggie Lucier, Senior Associate, Investment Strategy, joins Kevin Flanagan to explain the common forces behind the global bond sell-off, including deficit spending, inflation concerns and central bank tightening, and why Japan is the market to watch.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/us/insights/podcasts/basis-points-podcasts

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/us/insights/glossary

At the September FOMC meeting, the Fed raised rates by 25 basis points to 3.75%–4.00% amid persistent inflation pressures. This week on Basis Points, Kevin Flanagan explains why the move may not be the last hike investors see this year.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/us/insights/podcasts/basis-points-podcasts

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/us/insights/glossary

UST yields are climbing back to more “normal” historical levels, but the sell-off has stayed orderly, with no liquidity or funding stress in sight. This week on Basis Points, Maggie Lucier joins Kevin Flanagan to explain why rising rates reflect the bond market simply doing its job, and how WisdomTree’s Zero Duration Suite can help portfolios adapt.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/us/insights/podcasts/basis-points-podcasts

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/us/insights/glossary

Treasury yields have climbed to levels not seen since before the 2007 Financial Crisis, and the Treasury Department’s latest buyback push barely dented the trend. This week on Basis Points, Kevin Flanagan examines why the bond market remains in “selling on strength” mode ahead of Fed Chair Warsh’s first Jackson Hole appearance.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/us/insights/podcasts/basis-points-podcasts

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/us/insights/glossary

AI-related debt issuance has surpassed $500 billion in 2026 alone, adding to supply pressures in bond markets already contending with a nearly $2.0 trillion U.S. budget deficit. This week, Maggie Lucier joins Kevin Flanagan to discuss what is keeping Treasury yields elevated, the impact of Fed uncertainty and why Kevin favors a zero-duration approach to managing interest rate risk.

Basis point: 1/100th of 1 percent.

Agg: Refers to the Bloomberg U.S. Aggregate Bond Index.

“Double A issuer”: Refers to an issuer with an “AA” credit rating from a major credit rating agency

Learn more: https://www.wisdomtree.com/us/insights/podcasts/basis-points-podcasts

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/us/insights/glossary

Long-term Treasury yields have surged following the July FOMC meeting, as limited forward guidance raised questions about the Fed’s policy reaction function. On this week’s episode of Basis Points, Kevin Flanagan examines whether persistent inflation and resilient labor data could leave Chair Warsh boxed into a rate hike and what heightened duration and volatility risks mean for bond investors.

Basis point: 1/100th of 1 percent.

Learn more: https://www.wisdomtree.com/us/insights/podcasts/basis-points-podcasts

Please see the WisdomTree Glossary for additional definitions of terms and/or indexes: https://www.wisdomtree.com/us/insights/glossary