Could 5% Treasury yields create demand rather than destroy it?

Janus Henderson /

23-09-2026

5% Treasury Yields Could Attract Rather Than Crowd Out Demand

Janus Henderson portfolio manager James Briggs examines whether higher US Treasury yields and heavy corporate issuance are creating a crowding-out problem in fixed income.

Treasury yields near 5% may attract fresh capital into bonds, particularly from cash and other asset classes, as positive real yields improve income potential.
Despite heavy hyperscaler issuance, US investment-grade credit has not grown unusually relative to broader bond and equity markets, while investor demand remains strong.
Supply still matters at sector level, making issuer fundamentals, use of proceeds and valuation critical when assessing whether yields adequately compensate for risk.

Explore the full report to assess how higher yields, supply and credit fundamentals are reshaping fixed-income demand.