Citadel Securities attributes the recent U.S. Treasury sell-off and multi-decade high yields to robust economic growth and surging AI investment rather than worsening inflation expectations. Nohshad Shah, head of EMEA fixed income sales, stated that fiscal spending and capital-intensive AI development are intensifying competition for funds, driving real yields higher while inflation expectations remain stable. Shah noted that nearly all of the September rise in the 10-year Treasury yield stemmed from real yields as investors demand higher after-tax returns to accommodate persistent growth. He warned that if yields continue climbing, markets may need to reassess growth prospects, policy paths, or term premiums, signaling a repricing of the interest rates required to sustain current economic expansion.