Credit & Fed Desk: October 8, 2026
Good morning. It's Thursday, October 8th, and you are listening to the Credit and Fed Desk.
Yesterday the ten-year Treasury yield touched about 5.36 percent. That's a 24-year high. A few hours later, the government sold 39 billion dollars of ten-year notes at 5.30 percent, the highest yield at a ten-year auction since November 2000. And buyers showed up in force. The dealers who backstop these sales were left holding just 2.5 percent.
Then the Fed minutes landed, and they said another hike is likely by year end. This morning, Fed Governor Waller said those hikes don't have to come back to back. And overnight, oil jumped about 4 percent and took the bond rally right back.
Meanwhile, Oracle, Broadcom and SpaceX are lining up debt deals in the tens of billions to pay for AI chips. And in Australia, an Nvidia-backed data-center IPO just ran short of buyers.
Show notes
- Fed: minutes say another hike is likely by year end; Waller says hikes needn't come at consecutive meetings; Bessent asks for an 'open mind.'
- Treasuries: 10-year hits 5.364% intraday, then a $39B auction stops through at 5.30% with dealers left 2.5%; oil jumps 4% and takes the rally back.
- Credit: high yield at 303 bp while CCC sits at 12.14%; Paramount–WBD's $30bn of IG bonds without junk-style covenants; Anderson v. Intel.
- AI capital rush: Oracle, Broadcom and SpaceX chip debt, Europe financing the buildout, and Firmus's Nvidia-backed IPO runs short of buyers.
- Arthur Hayes (labeled, speculative) on the Anthropic IPO; France gives back the bounce; the scoreboard and calendar.