Credit Passed the Second-Week Test: The 5.3% Ten Year Is a Real Rate Story

Last week, the Signal said a second week of wider high yield spreads would change its view. It did not arrive. Spreads narrowed and held even as long-term Treasury yields reached their highest level since 2002, which suggests the bond market is pricing the cost of capital, and the Fed, more than it is pricing inflation.

Read the full Thesis →

·     Why long-term rates keep climbing even as inflation expectations stay stable

·     What credit spreads say about risk, and why they are the signal to watch

·     How AI revenue, on-device AI and power contracts are shaping the investment landscape

·     What would change the Signal’s view on rates and credit

Published by N10°Assets, the Weekly Signal distills the week’s most consequential developments across the themes our Assets team believes are structurally driving markets: AI infrastructure, power and energy, enterprise technology, capital markets intelligence, and the macro forces shaping long-duration capital allocation.