Jim Bianco Remains Bullish on U.S. Government Debt as Yields Rise
Oil’s rise is adding pressure to bond markets as government-borrowing costs reach notable levels in the United States and United Kingdom. The 10-year U.S. Treasury yield climbed to its highest point since 2002, while the UK’s long-term borrowing costs reached 6% for the first time in almost three decades, according to Bloomberg.
Government debt markets faced renewed pressure as oil prices moved higher and bond yields rose in several countries. Bloomberg reported that the increase came amid economic uncertainty linked to the war in the Middle East.
In the United Kingdom, long-term borrowing costs reached 6%, their highest level in almost three decades. In the United States, the yield on the 10-year Treasury note climbed to its highest level since 2002.
The market moves have encouraged investors to bet that central banks could raise interest rates further. The source did not provide additional details on the oil-price move, the specific central-bank decisions under consideration, or the timing of any potential policy changes.
Jim Bianco, president and founder of Bianco Research, said he remains bullish on U.S. sovereign debt because he sees value in it. He discussed that position with Bloomberg presenters Caroline Hepker and Nathan Hager.
THE QUESTIONS THIS EVENT LEAVES BEHIND
What assumptions underpin the view that U.S. sovereign debt is generating sufficient value despite rising yields?
How might higher oil prices alter the balance between inflation risks and economic growth?
Which investors are most exposed if central banks raise interest rates further?
What conditions would cause Bianco to reverse his bullish position on U.S. government debt?
How could sustained borrowing-cost increases in the United States and United Kingdom affect government financing decisions?
YOUR QUESTION
Does this story leave you with another question?
Send us the question the report did not answer. It may become the next question IAQ investigates.
GLOBAL CURIOSITY MAP · SEPTEMBER 2026