Guggenheim's Walsh Would Buy a Lot of 30-Year US Treasuries at 6%

• 10-year US Treasuries are currently in a trading range, but 5% would present a buying opportunity.
• 30-year US Treasuries are primarily driven by inflation concerns; 6% would be a significant buying opportunity.
• The sheer volume of debt issuance, both from fiscal spending and for AI data center buildouts, is pushing long-end rates higher.
• Walsh is wary of 'obsolescence risk' in long-duration hyperscaler debt and advises a thoughtful, diversified approach to investing in this space.
• While the high-yield market has improved in credit quality, the concentration of debt issuance in investment-grade for AI infrastructure raises near-term risk concerns.

Guggenheim CIO Anne Walsh sees a buying opportunity for 10-year US Treasuries if yields reach 5% and would 'back up the truck' for 30-year Treasuries at 6%. She highlights massive debt issuance for AI data centers and fiscal spending as factors pushing rates up, but expresses concern about 'obsolescence risk' in long-duration hyperscaler debt and overall credit market risks.