The Paradox Is Explained

Oct 15, 2026 · 0:29

The city of Ledgerville! The ten-year Treasury yield fell to 5.105%, a three-week low. Mayor Pennywhistle: but inflation was hot yesterday! Dash: AI stocks slumped, so money hid in bonds. Pop: bonds are a safe haven again. Zap: hot inflation (3.7%, above forecast), and yields fell anyway. And so, once again, the paradox is explained.

The ten-year Treasury yield fell to 5.105% on Thursday, its lowest in three weeks, the day after inflation came in hotter than expected, because the sell-off in AI stocks sent investors out of shares and into government bonds as a safe haven.

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