Jim Bianco of Bianco Research said bond traders will stop panicking only when the Federal Reserve starts panicking, after the Fed “did not panic today.”
Stress in long-term U.S. government debt deepened as the 20-year Treasury yield reached its highest level since October 2023, a sign that investors are demanding more compensation to hold longer-dated bonds. Jim Bianco, President at Bianco Research, framed the move as ongoing market anxiety, saying, “Bond traders will STOP panicking when the Fed starts panicking. The Fed did not panic today.” The remark points to the Federal Reserve’s posture as a key focus for markets, because long-term yields often reflect expectations for inflation, borrowing costs and the broader policy outlook.