Fed-Treasury ‘Regime Change’ May Fuel Bond Rally, Citrini Says, 10s +2bp · desk brief, Thu 27 Aug 2026
Treasuries (close 2026-08-26): 2s 4.19% (+2.0bp), 10s 4.66% (+2.0bp), 30s 5.18% (+1.0bp).
Tape (close 2026-08-26): VIX 15.21, 2s10s +47bp.
Narrative: US core PCE inflation expected to remain stubbornly high, urging the Fed to hike rates
What mattered:
• Fed-Treasury ‘Regime Change’ May Fuel Bond Rally, Citrini Says
• Fed’s Hammack Says Rates Not Restrictive, Time to Act Is Now
• Fed's Hammack says 'now is the time to act' on raising interest rates
• Fed's Hammack: Now is time to act given persistence of inflation.
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