Macro roundup for Sept 7, 2026: long-end Treasury yields under pressure from fiscal supply and AI capex demand; Hayes bullish on Bitcoin via EUR/JPY dollar-weakness thesis; El-Erian warns sovereign yields face persistent upward pressure.
Macro & Markets ·
Long-end Treasury yields faced persistent pressure during the week of August 31–September 7 from fiscal supply, AI-driven borrowing demand, and tightening liquidity conditions. Arthur Hayes identified EUR/JPY as a key signal for dollar weakness, arguing that European stress could force additional Fed reserve purchases and ultimately benefit Bitcoin, while he maintained structural long positioning through year-end. Mohamed El-Erian warned that sovereign yields will remain under upward pressure as Treasury and technology-sector borrowing outpace reliable demand sources, with the UK, Japan, and France particularly vulnerable.