McGlone Sees 5% Bonds Trumping Gold and Bitcoin Amid Global Market Volatility
Mike McGlone, a strategist at Bloomberg Intelligence, recently pointed out that investors may want to consider selling alternative assets such as Bitcoin and gold in favor of U.S. government bonds.
This comes after the Federal Reserve raised its benchmark interest rate by another 25 basis points on September 16, 2026, to a range of 3.75%-4%.
The yield on 10-year U.S. government bonds is now close to the psychological 5% level, while global markets are facing rising energy prices and a unique cycle where the Fed continues to tighten financial conditions despite previous expectations of easing.
According to McGlone, when the U.S. government can offer a fixed 5% annual return on government-backed securities, it changes the logic of holding alternative assets, making gold less appealing due to its lack of coupon income and Bitcoin more volatile amid scarce liquidity.