The 10-year Treasury yield closed a volatile week. One bond manager says the latest leg of the selloff reflects forced trading more than new economic information. CNBC reported the 10-year yield was little changed to end a volatile week. Priya Misra, a fixed income portfolio manager at JPMorgan Asset Management, laid out her view on CNBC: fixed income is attractive at current levels.
Misra Sees a Peak Forming and Declines to Name a Level
“We’re forming that peak. It’s very hard to call the absolute top. So I’m not saying 520 is the peak, but we’re forming that peak,” Misra said. She cited a current 10-year yield of 5.17% and a recent high of 5.20%.
How Rare Today’s Yields Are Over the Past Year
Federal Reserve data shows the 10-year yield at 5.18% on September 24, 2026. It was up 0.07 from the prior day, up 0.24 from a week earlier and up 0.54 from a month earlier.
That reading falls in the 99.6th percentile of the past twelve months. Over that window the yield averaged 4.356%, with a low of 3.97% on February 27, 2026. The 5.18% reading is the twelve-month high, supporting her view that rates are near an extreme for the year.
Why Misra Blames Positioning for the Final Leg
“I think the last 20 basis points of move is really overdone because that is positioning washout. We’ve had no fundamental economic data which should explain this rate rise,” Misra said. A basis point is one hundredth of a percentage point; a positioning washout describes traders forced out of existing bets. It drives prices without new information.
A basis point is one hundredth of a percentage point, the standard unit bond traders use. A positioning washout describes traders being forced out of existing bets, which pushes prices around without any new information coming.
The yield moved from 4.96% on September 22 to 5.11% on September 23 to 5.18% on September 24, showing speed but not what drove it.
Supply-Led Versus Demand-Led Inflation Is Her Deciding Test
“What we will need to see for rates to rise further would be a sense that this is demand-led inflation. We’re still looking at inflation. A lot of it is supply-led,” she said.
Supply-led inflation comes from limited production and demand-led inflation from increased spending, and the Federal Reserve’s tools work directly on demand, so the inflation source shapes how much tightening is required. Misra’s argument: as long as inflation stays supply-led, the case for significantly higher rates is weak.
Her Case for Bonds: 6.5% Yields, 60/40 and Credit
Misra said: “You can get high quality fixed income at 6.5%. That’s what the equity market is.”
On diversification: “Fixed income gives you that diversification hedge, particularly when interest rates are this high, because the Fed is priced to hike. Well, if things slow down, they may not hike as much.”
“You can buy fixed income and make sure you’ve got some inflation protection in there, so you can buy TIPS instead of commodities. You can buy TIPS, you can buy credit and not take duration risk. I think 60/40 can work. But be careful about that. The 40 should not only be long-duration munis or Treasuries. You can take credit risk.” TIPS are Treasury Inflation-Protected Securities; credit risk is the chance a corporate borrower fails to pay.
Misra also said corporate credit fundamentals remain strong with AI capital spending still being deployed, and that data center issuance presents opportunities alongside varying construction and force majeure risks.
What Her Forecast Depends On
Misra is forecasting. Her case rests on inflation staying supply-led. Incoming inflation data showing whether price pressure changes toward demand will test the core of her argument.