Hedgeye CEO Keith McCullough maintains short positions in $TLT and $ZROZ, stating the market is pricing in more hikes than the Federal Reserve will likely deliver. McCullough cited a pattern from 2007 when bond yields capped at approximately 5.29% before the 2008 market crash, eventually falling to 1.39% by 2012. He noted that the Federal Reserve typically reacts to late cycle data on a lag and continues to track a range ceiling for the 2 year yield at 5.00%.
Wednesday, October 21, 2026
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US 2 Year Bond Yield Drops 10 Basis Points After Cycle Peak
US Markets20 days ago
Yields for the Treasury's short-dated notes ended the day at 4.785% on October 1, a decline from the 4.952% peak reached on September 28. This most recent high was the highest level seen for the 2 year yield since May 2024. The drop represents a 10 basis point fall over the course of the day, erasing a portion of the rally that previously drove rates toward the 5.00% mark.
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