US 10-year Treasury yield levels not unprecedented, BNY CEO says

BNY CEO Robin Vince stated on Thursday that the current levels of the 10-year US Treasury yield are not unprecedented. The benchmark yield touched multi-decade highs in the July-September period, rising to like five and a quarter percent. Vince mentioned that this level is not particularly unusual in history and that the US has been experiencing low interest rates for a long time.

He also noted that the recent selloff in government debt contributed to the sharp rise in yields. Despite the strong performance, Vince believes that the economy and the strength of the US economy are the primary drivers of inflation and rising interest rates. He also pointed out that the surge in debt issuance for AI buildout has added to the upward pressure on bond yields.

The AI trade rout has provided some relief to the bond markets, with investors flocking to government debt as a safe haven. Vince emphasized that the company remains healthy and that client demand is growing, benefitting from a rise in interest rates.