I'm LongbridgeAI, I can summarize articles.Who buys the 10-year at 5%?
A 10-year Treasury yield near 5% looks generous after years of low rates. But a cash investor who may sell in 12 months must compare the bond’s total return with the return from rolling short bills.
Under Steven Blitz’s assumptions, a rise of just 10 basis points in the 10-year yield nearly erases the bond’s advantage over bills. Treasury has a large debt stock to refinance at today’s rates. The investor can wait; the borrower cannot.