US Borrowing Costs Soar to Highest Since 2007

Watch on YouTube ↗  |  September 15, 2026 at 07:05  |  46:02  |  Bloomberg Markets
Speakers
Ven
Thomas Buberl — CEO, AXA
Stephen Carroll — Co-Host, Bloomberg Daybreak Europe
Anthony Stevens — Bloomberg Market Producer
Brian Moynihan — CEO, Bank of America
Sam Unsted — Editor, Bloomberg Markets Today
Mark Carney — Former Governor of the Bank of England/Bank of Canada, Canadian Politician

Summary

The program focused on a global bond selloff that pushed the US 10-year Treasury yield to its highest since 2007, driven by rising oil prices, inflation fears, and heavy government and AI-related capital demand. Markets braced for a Fed hike, while Asian and US chip stocks sold off and investors rotated toward healthcare. The show also covered AI regulation debates, Japan's potential defense spending increase, UK jobs and Bank of England policy, and included an interview with AXA CEO Thomas Buberl on the insurer's new plan and French fiscal risks.

  • US 10-year Treasury yield hits highest since 2007 as inflation and energy prices surge.
  • Markets price a Fed rate hike, while debate continues over ECB and BoE tightening paths.
  • AI/chip stocks sell off; investors rotate toward healthcare and pharma.
  • Japan reportedly considers raising defense spending to 3.5% of GDP, pressuring JGB yields.
  • UK labor market cools slowly, but oil and food inflation complicate the Bank of England outlook.
  • AXA raises profitability targets and focuses on organic growth, efficiency, and AI.
  • AXA CEO warns France needs structural reforms to avoid wider sovereign debt spreads.
  • AI regulation remains a political and industry flashpoint in the US, Europe, and Canada.
Ideas
Ven 6:38
Long-end Treasury yields biased higher.
There has been a seismic shift in demand for investment capital from AI and government deficits while the supply of funds is broadly unchanged, shifting the neutral rate higher and keeping long-end Treasury yields elevated. Inflation near 3% means the Fed needs to raise rates; if it fails to do so, it risks credibility and further market selling.
US long-end Treasuries MED
Thomas Buberl CEO, AXA 26:03
AXA raises targets, focuses on organic growth.
AXA's new plan is a continuation after getting all countries and lines of business working well, with the next phase focused on organic growth, market share gains, efficiency, and shareholder returns rather than large acquisitions. Insurance has structural growth drivers from rising risk, longer longevity, and retirement/health needs, and AI can improve customer service, cross-selling, and retention.
AXA HIGH
Thomas Buberl CEO, AXA 29:35
French debt needs reforms; spreads may widen.
Political discussion in France about not repaying debt is dangerous and rising yields and widening spreads are a market message that the government must implement structural reforms to fix the budget. If France fails to reform, markets will show clear dissatisfaction and French sovereign debt spreads could widen further, even though AXA remains diversified with 12% of assets in France.
French Government Bonds (OATs) MED
Stephen Carroll Co-Host, Bloomberg Daybreak Europe 43:35
Rotate from chips into healthcare/pharma.
Investors are rotating out of US semiconductor/chip ETFs as AI enthusiasm cools, and the healthcare sector, particularly pharma, is emerging as a winner of that rotation according to sector trackers.
SMH LOW
Stephen Carroll Co-Host, Bloomberg Daybreak Europe 43:35
Rotate from chips into healthcare/pharma.
Investors are rotating out of US semiconductor/chip ETFs as AI enthusiasm cools, and the healthcare sector, particularly pharma, is emerging as a winner of that rotation according to sector trackers.
XLV XPH LOW
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This Bloomberg Markets video, published September 15, 2026, features Ven, Thomas Buberl, Stephen Carroll discussing US long-end Treasuries, AXA, French Government Bonds (OATs), SMH, XLV, XPH. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Ven, Thomas Buberl, Stephen Carroll  · Tickers: US long-end Treasuries, AXA, French Government Bonds (OATs), SMH, XLV, XPH