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Bonds•17 July 2026•

2 min read

End of an Era: Hoisington Pivots to Bearish Stance on US Treasuries After 30 Years

Key Facts

1Hoisington Investment Management and chief economist Lacy Hunt ended their bond bullishness that lasted for over three decades.

2The pivot is driven by persistent inflation and the upward trend in bond yields.

In a move that marks a tectonic shift in one of the bond market's most enduring investment stances, Hoisington Investment Management and its chief economist Lacy Hunt have officially ended their bullish outlook on Treasuries after more than 30 years. The pivot is driven by the realization that persistent inflation and the resulting upward trend in bond yields have invalidated the firm's long-standing thesis, signaling a major strategic retreat for the legendary bond bulls.

This shift arrives at a critical juncture for sovereign debt markets as investors weigh the Federal Reserve's ability to manage price stability. According to market data, inflationary pressures remain a core concern; the US Consumer Price Index (CPI) was reported at 3.5% year-on-year as of July 14, 2026. This data point underscores the structural inflation risks that Hoisington cites as a primary reason for abandoning its optimistic view on long-term debt instruments.

Looking ahead, market participants will focus on the upcoming Federal Reserve Monetary Policy Report to gauge the next phase of the interest rate cycle. With the firm's pivot highlighting a bearish sentiment shift, upcoming speeches from Fed officials Bowman and Waller will be closely scrutinized for clues on yield trajectory. In the absence of current price levels, the focus remains on whether macro data will continue to support this new bearish consensus.