Additional citation: Bloomberg: Citadel Securities Says Spiking Yields Reflect Fed Policy Risk - https://www.bloomberg.com/news/articles/2026-08-17/citadel-sec

Additional citation: Bloomberg: Citadel Securities Says Spiking Yields Reflect Fed Policy Risk - https://www.bloomberg.com/news/articles/2026-08-17/citadel-securities-says-spiking-yields-reflect-fed-policy-risk https://www.bloomberg.com/news/articles/2026-08-17/citadel-s... - August 17th, 2026 > The Federal Reserve’s reluctance to tighten monetary policy after a prolonged period of above-target inflation is keeping long-term bond yields at multiyear highs, posing a broader risk to markets, according to Citadel Securities. Long-dated Treasury yields remain at their highest levels in nearly two decades, even as policy rates are 175 basis points below their peak, Nohshad Shah, Citadel’s head of EMEA fixed-income sales, wrote in a client note. “In my mind, this reflects a market view that policymakers, both the Fed and fiscal authorities, tend to take the easier route when faced with difficult choices,” Shah wrote. “So long as this persists, it will remain a risk for markets more broadly.” US 30-year bond yields climbed to a 19-year high Monday, topping 5.28%, as the bond market lowered expectations for a Fed interest-rate cut in September after data last week showed both inflation and consumer demand were easing. Shah cautioned against interpreting the recent improvement in inflation and a soft jobs market as an all-clear for rates, noting that more than 55% of core goods prices were rising. That leaves the Fed’s policy meeting next month a “line-ball call,” he said. Turning to the artificial intelligence race, Shah sees the investment case shifting toward cloud infrastructure and away from the development of more advanced models. Hyperscalers such as Microsoft and Google will be in a better place to monetize AI through computing capacity, inference and distribution, potentially offering more visible returns than frontier AI developers, such as OpenAI and Anthropic.