Bond Market Outlook 2026: What Treasury Yields Near Multi-Year Highs Mean for Your Portfolio

**SPEAKER_1** (0:01)
This is InvestTalk from KPP Financial, helping investors make sense of the markets one day at a time. Here's your host, Luke Guerrero.

**Luke Guerrero** (0:16)
Good afternoon, fellow investors, and welcome to the Tuesday, July 28th, 2026 edition of InvestTalk.
I'm your host, Luke Guerrero, and I'll be with you over the next 55 minutes or so. As we dissect the market today, talk about the stories that matter and answer your finance and investment questions. To that end, in just a bit, we'll talk about today's performance and run down those show topics, but let's tackle this caller question now.

**SPEAKER_3** (0:50)
Hi, I would like to hear your thoughts on ING. Thank you guys for what you do.

**Luke Guerrero** (0:59)
All right. ING is a Amsterdam-based global banking company. I think you could even call it maybe one of the largest banking giants of Europe. About $100 billion market cap. This line that I imagine you're looking at is one of the trades on the New York Stock Exchange.
And so this company is servicing a whole bunch of markets, primarily in Europe, though they also do service Asia and Australia as well.
It also has a mobile first digital banking strategy that it started to implement a couple years ago.
The hit allowed it to reach record profit in 2025 of $6.3 billion. In fact, in their most recent earnings, they actually beat estimates on earnings per share of about 13 percent. They beat revenue just slightly by about 1.22 percent. That's primarily driven by two things that a bank like this really cares about, deposit growth and growth in their mortgage lending arm. In terms of guidance, looks like they guided revenue up a bit as well.
This puts it in a position for pretty strong pre-earning setup as we go into our next earnings, which is in a couple of days. But really what's been happening here is a search in this company's performance. I mean, it's up over 50 percent in the past 52 weeks, making it one of the strongest performers, not just in Europe in terms of the banking sector, but really globally amongst large cap banks. Recently was at an all-time high.
There's a lot to be bullish about. I mean, 16.57 percent return on equity, that record profit, seven percent share count reduction in a single year. I mean, for a lot of reasons, this is Europe's best-run digital bank.
But I mean, it is at a record high price here than in a lot of ways is justified. Now, given that earnings are approaching in a couple days, the setup is pretty strong here. I would say the easy trade is likely behind us, given where we are in terms of valuation. So this is a name that I do like. It certainly has borne itself out in its strategy. The proof, as they say, is in the pudding. But for me, this is the type of name that I wait for a pullback before entering into a position. That is ING. Thanks for the call. Well, we had a great show yesterday. Justin looked into gas prices going up in 2026 And more importantly, what $4 of the pump means, not just for your wallet, but for your portfolio as well. So he discussed the need for investors to understand how there's a bit of a ripple effect that reaches into your wallets. He also answered a listener question on ticker AXP, which is American Express Company. If you happen to miss yesterday's episode of InvestTalk, I encourage you to go check it out. And remember the best way to never miss an episode is to subscribe wherever you get your podcasts. All right. Today, entirely different story. We're going to be talking about the bond market outlook for the rest of the year. And really what treasure yields near multi-year highs means for your portfolio. We've seen the 10-year yield hovering near January 2025 highs because of oil-driven inflation and those fears colliding with what is probably the least certain Fed path we've had in quite some time. So that's created this serious turbulence in bond markets. So we'll talk a little bit about that and what these yields mean for bond investors, mortgage borrowers and really anyone trying to build a balanced portfolio right now. We also have a couple other stories including one on big banks and how they are starting to move back into the commercial real estate lending business. Another about big techs credit risks and how credit default swaps are showing a big rise in those. In terms of time at the end of the show we'll touch on those massive supply deals that are feeding the AI frenzy and how they may not necessarily be a sure thing. We also have some voicemake calls ready to play, including one on return on equity versus return on assets, which I'm sure that's a great question. And another on CrowdStrike Holdings, Inc. As well as some questions that came in from the comment section of the Invest Talk YouTube channel. Now we're going into a quick break. We have plenty of show ahead of us. If you're listening to our live streamer on AM 1220 in the Bay Area, I encourage you to pick up that phone and dial 888-99-CHART. When we get back, we'll talk about today's market activity.