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In-line September PCE inflation data has fueled equity market rallies on expectations of further Federal Reserve rate cuts. However, the bond market has diverged, with 10-year Treasury yields rising, signaling investor apprehension over inflation and the Fed's policy path.
AGNC Investment Corp. stock reached a 52-week high, driven by its 13-14% dividend yield and a favorable interest rate outlook. However, analysts are cautious, citing valuation premiums and risks to the dividend's sustainability as the market weighs the Fed's next move.