The 10-Year Hit a 24-Year High. Nobody Is Buying Puts. Are You Watching the Wrong Market?

Andy Constan, Brent Kochuba and Eric Pachman examine rising bond yields, options positioning and the inflation risks facing stocks. What happens if the rate relief traders are betting on never arrives?On this month's Last Call, Jack Forehand and Matt Zeigler connect three perspectives on the market. Andy Constan explains why stronger growth and debt supply can push yields higher without signaling a bond crisis. Brent Kochuba examines options flows that suggest traders are still leaning toward a rebound. Eric Pachman traces the path from refinery constraints and diesel shortages to freight costs and consumer inflation. Jack and Matt close with the investment implications of AI spending, efficiency and adoption.Follow Last Call on Spotify⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Follow Last Call on Apple Podcasts⁠Topics covered:Andy Constan on growth, AI capital spending and the supply of debtWhy Andy Constan sees more attractive bonds without calling for a recessionHow higher yields can constrain stock returns even when growth remains strongBrent Kochuba on bond volatility, calm equities and bets on falling yieldsWhy Brent Kochuba is watching both upside surprises and downside riskEric Pachman on crack spreads and why cheaper crude may not mean cheaper fuelHow diesel prices can flow through freight bills into CPIEric Pachman on wage inequality and what national averages missAI spending, productivity and the difference between slower growth and contractionThe practical obstacles to bringing AI agents into everyday lifeChapters:00:00 Rising yields and the outlook for stocks05:26 Andy Constan: Growth, debt supply and higher yields12:01 Why bonds look more attractive after the selloff18:33 Brent Kochuba: Options flows and bets on rate relief23:21 Equity complacency and risks in both directions31:12 Eric Pachman: Diesel shortages, crack spreads and inflation40:06 Wage inequality and the limits of average inflation44:40 AI capital spending, productivity and investment returns50:34 AI adoption, automation and everyday obstaclesLearn more about the Excess Returns podcast network:⁠https://excessreturns.co⁠No information discussed in this podcast should be construed as investment advice. Securities discussed may be held by the hosts and guests, their firms or their clients.