Bloomberg Surveillance · Thursday, September 10, 2026
Greg Peters, co-CIO of PGM Credit, believes that Treasury yields are likely to remain elevated and that a 5% yield on the 10-year Treasury is plausible. He attributes this to strong nominal growth and a competition for capital from sovereign debt and AI-driven hyperscalers, rather than a single factor. Peters suggests that the only scenario for lower yields would be a recession, which he doesn't foresee as desirable for consumers and investors.
“10-year treasury, up another four basis points, 488. I mean, we're on the 5% watch on the 10-year, let's be honest.”
“Yeah, it's definitely possible, quite plausible in fact. I think the question you have to ask is, the opposite, which is what would drive bond yields lower? And the only version that I can see driving bond yields lower would be a good old-fashioned recession. And I don't think that is something that consumers and investors want. So I do believe we're in this more normalized bond yield environment.”
“100%, it's a thing. There is a competition for capital in ways that we haven't seen in a very long time.”