Shuangxian Capital deputy CIO Jeff Sherman said heavy government issuance and
weakening demand will continue to pressure long-dated US Treasuries. Thursday’s
rebound, driven by AI-trading flows and volatility in French markets, was an
oversold bounce and does not alter the fundamental outlook, he said. Shuangxian
remains significantly underweight long-dated Treasurers across most portfolios;
some strategies are short the long end of the yield curve. Sherman also
criticized Treasury Secretary Bessent’s attempts to push yields lower, saying
tough rhetoric has not worked and the government should focus on restoring
investor confidence rather than blaming critics.
