August 24, 2026
Long Yields and the Search for Demand
KEY SUMMARY POINTS
- Long-term Treasury yields have risen to multi-year highs as persistent government deficits have increased the amount issuance markets must absorb.
- Strong economic growth, increased investment grade issuance, and sticky inflation are also contributing to higher long-term yields.
- Recent intervention by the U.S. Treasury sends a strong signal to markets that policymakers are willing to respond if long-end yields move higher.
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About the Author
Lorne Gavsie is Senior Vice-President and Head of Macroeconomic & FX Strategy at CI Global Asset Management.
As Senior Vice-President and Head of Macroeconomic & FX Strategy, Lorne Gavsie leads CI Global Asset Management's global macro platform and serves as portfolio manager for the firm's currency strategies. He contributes to the asset allocation process and oversees the firm’s long-term asset class return framework, which informs investment strategy and portfolio construction.
Lorne has more than 25 years of experience in global financial markets, including senior leadership roles in Toronto and London. He holds a joint MBA from the London School of Economics and Political Science, HEC Paris and NYU Stern School of Business, and is a member of the Bank of Canada's Canadian Foreign Exchange Committee. He also serves on the Executive Board of the International Dyslexia Association, Ontario Branch.
About the Author
Neil Shankar is CI Global Asset Management’s Economist, responsible for monitoring key macroeconomic trends and shaping CI GAM’s economic outlook. He actively participates in investment and asset allocation discussions, helping guide decision-making.
A leading contributor to CI GAM’s Capital Insights publication, Neil shares in-depth perspectives on evolving economic conditions. He also frequently engages with stakeholders throughout the organization and externally, helping to deepen understanding of the economic landscape. He is regularly quoted in the press for his views on the economy and markets.
With over 10 years of industry experience, Neil joined CI GAM in 2024 after holding similar roles at other major Canadian financial institutions. Neil holds an MA in Business Economics from Wilfrid Laurier University and a BA (Honours) in Economics from The University of Western Ontario.
About the Author
Fernanda Fenton, Vice President, Portfolio Manager – Fixed Income, brings over 11 years of investment management experience, with over 15 years in the financial services industry, to her role. At CI GAM, Fernanda is a portfolio manager specializing in global interest rates and emerging markets fixed income. Before CI GAM, Fernanda was an associate portfolio manager at another Canadian asset manager. Prior to that, she spent six years in Latin America debt capital markets and investment banking at Credit Suisse in New York. Fernanda is a CFA charterholder, holds a Master of Business Administration degree from the University of California at Berkeley, and a Bachelor of Arts (Honors) from the Instituto Tecnológico Autónomo de México in Mexico City.
GLOSSARY:
Bond yield: The interest earned on a fixed-income security.
Liquidity: The degree to which an asset or security can be quickly bought or sold in the market without affecting the asset’s price. Cash is considered to be the most liquid asset, while things like fine art or rare books would be relatively illiquid.
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Published August 24, 2026
