Bloomberg Surveillance · Friday, August 14, 2026
Priam Mizra of JP Morgan argues that current interest rates, while higher than in recent years, are not unusual when viewed in historical context and are pricing in future supply and potential productivity gains from AI. She notes that demand for treasuries and corporate bonds exists at current prices, indicating acceptance of a 'new normal' of better, higher interest rates.
“But right now the auctions were fine. Interest rates have risen, but I think if you zoom out and you go back to the late nineties or the pre Lehman time period, actually interest rates don't look particularly odd. I think they are pricing in all the supply that's coming in. They're pricing in potentially higher productivity through AI. But there is still I would go back to we're seeing inflows into fixed income, so there's demand for treasuries. There's demand for all the corporates now at wider spreads, at higher new issue concession. So there's a price that the market is demanded for all this supply. But the demand is there at a price, and I think that's what we're We just have to get used to the new normal of better higher interest rates.”
“So there's a price that the market is demanded for all this supply. But the demand is there at a price, and I think that's what we're We just have to get used to the new normal of better higher interest rates.”