Bloomberg Surveillance · Tuesday, September 15, 2026
Ganeet Dhingra of BNP Paribas states that 5% 10-year yields are 'here to stay' and warns that they might not be the ceiling, especially given the ongoing AI build-out and resilient consumer spending. Rate hikes are necessary but not sufficient to curb long-end yields.
“5% 10-year yields are here to stay. Rate hikes are the necessary but not sufficient condition to prevent a rise in long-end yields.”
“I don't think the Fed is hiking just because they're concerned about the inflation problem. They're also hiking because they're concerned about being behind the curve when it comes to this AI build-out, the consumer strength, and the growth of the economy.”
“In our outlook that we published a while back, we see long-end yields at 5% on the 10-year, here to stay. And we think just like three hikes is not the ceiling, we think 5% is not the ceiling for the 10-year.”