US bond yields back to 'normal'; AI needs a reality check, says Ed Yardeni

Veteran strategist Ed Yardeni said the US 10-year Treasury yield around 4.5% is normal and a return to historical ranges of 4-5%, calling recent upward pressure a healthy normalisation rather than a crisis. He views the pullback in AI-linked stocks and the unwinding of SpaceX post-IPO gains as realistic reassessments rather than signs of a bubble burst. He also warned that new Fed Chair Kevin Warsh has turned more hawkish than expected, with a possible rate hike at the July meeting if inflation persists, which could weigh on emerging markets including India through FII outflows.