Joanne Bianco, senior investment strategist at BondBloxx, said U.S. Treasury yields above 5% may look high but are not abnormal; the true outlier was the post-global financial crisis era of persistently low rates. She cited resilient U.S. growth, an upward revision to Q2 GDP, elevated oil prices and expanding Treasury supply as the main drivers of higher yields. Bianco said large federal deficits and growing issuance are leading investors to demand a higher term premium to compensate for holding

Joanne Bianco, senior investment strategist at BondBloxx, said U.S. Treasury yields above 5% may look high but are not abnormal; the true outlier was the post-global financial crisis era of persistently low rates. She cited resilient U.S. growth, an upward revision to Q2 GDP, elevated oil prices and expanding Treasury supply as the main drivers of higher yields. Bianco said large federal deficits and growing issuance are leading investors to demand a higher term premium to compensate for holding long-dated U.S. Treasuries.