AI Will Kill Us in 10 Years, but Bond Market Will Do It 'Next Week,' Says Strategist As Treasury Yields Hit 24-Year Highs

The 10-year and 30-year Treasury bond yields climbed to their highest levels since 2002 on Thursday, and Clocktower Group market strategist Eric Wallerstein warns that the bond market is a bigger threat than artificial intelligence risk years down the line. ” will AI kill us in 10 years… buddy, the bond market is going to kill us next week. 8 billion annually. 33%, the highest since 2002.

Our national debt in 2002 was just $6 trillion. 8 billion annually. 14 trillion annually—more than Social Security. — Peter Schiff (@PeterSchiff) October 1, 2026 The IMF’s Unusual Reassurance Economist Mohamed El-Erian said the IMF’s decision to issue a statement reassuring the public that bond markets are in order was unusual and risked raising more questions than it answered.

The IMF issuing a statement to reassure the public that bond markets are "functioning in an orderly manner" is highly unusual—and risks raising more questions than it answers. com/csYUXFpnsq — Mohamed A. ” Read Also: Elon Musk Says Cutting Optimus Memory Was Tesla's 'Only Way' to Scale, As Micron Says Humanoid Robots Need 200GB+ of Memory Each A Supply-Demand Imbalance, Not Just Fed Policy El-Erian also added that comments from Federal Reserve officials have struck a hawkish tone, though not as aggressive as what markets are currently pricing in.

He pointed instead to a widening gap between rising Treasury supply and falling demand from traditional long-term buyers, saying the recent yield spike has overshot that imbalance, a dynamic he linked to hedge funds playing a growing role in the market. Three things to note when considering the influences on US government bond yields: 1. While Fedspeak this week has struck a hawkish tone, it was not quite as aggressive as the rate-hike trajectory currently priced in by markets. 2.

While I have been pointing for months to the… — Mohamed A. El-Erian (@elerianm) October 1, 2026 CNBC’s Jim Cramer asked whether a “bond short squeeze” could be starting, citing Fed Vice Chair Philip Jefferson ‘s comments that he and his colleagues “will need to come to our own judgment, which may take more time” before shifting monetary policy. Bond short squeeze starting? Fed' s Jefferson doesn't want to make a move without more data.

Seems reasonable. Unless you are shorting treasuries like a mad man — Jim Cramer (@jimcramer) October 1, 2026 What Rising Yields Mean for Stocks Jurrien Timmer, Director of global macro at Fidelity Investments, said rising yields typically pressure stock valuations, but strong earnings growth could soften the blow. He noted that if the 10-year yield reaches 6%, a Fed valuation model suggests stocks should be priced at 16 times earnings, down from roughly 19-20 times today, a drop that double-digit earnings growth could help offset. What happens to equities if yields continue to rise?

The simple answer is that per the DCF model the present value of future cashflows will decline, all else being equal. Fortunately, all else is not equal and earnings are booming. 629%, both at their highest levels since May and June of 2002, respectively. 31 in extended trading.

70 in after-hours. Edge rankings indicate the 7-10 year bond ETF has a Momentum score in the 26th percentile and a negative price trend across the short, medium, and long term. See More: Top Momentum Stocks Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors. Image via Shutterstock/ Andrii Yalanskyi