Interest Rates Surge Past 5.36% on 10-Year; Strategists Advise Short-Duration Bonds

The 10-year Treasury yield hit 5.36% on Oct 7, the highest in nearly 25 years. Strategists recommend short-duration bonds, floating-rate funds, and tax-loss harvesting. They see opportunities in front-end yields but warn that AI-related debt issuance and rising capital costs could eventually stress equities. Earnings growth has so far kept stocks resilient, but Q3 reports are the next test.