Bloomberg Surveillance 9/15/2026

Summary

Bloomberg Surveillance covered the market impact of 5% 10-year Treasury yields, triple-digit crude oil, and a near-certain Fed rate hike. Guests debated whether long-end bonds are a buy or vulnerable to further yield increases, with some favoring front-end Treasuries, energy stocks, and software, and others warning that oil supply disruptions could force military action or recession. AI regulation and liability debates also featured, while equity strategists focused on earnings momentum and buying opportunities despite macro headwinds.

• 10-year Treasury yields topped 5% for the first time since 2007, pressuring equities and raising Fed hike expectations.
• Crude oil traded above $100 as the East-West pipeline stayed offline and Middle East supply routes remained disrupted.
• BlackRock's Russ Koesterich favored front-end Treasuries and energy stocks as a hedge, while tactically trimming AI exposure.
• Victoria Fernandez favored 5% 10-year Treasuries, investment-grade credit, and software stocks, while trimming equities.
• BNP's Guneet Dhingra argued 5% may not be the ceiling for 10-year yields and the Fed may need three to six hikes.
• Wells Fargo's Darrell Cronk downgraded banks/financials to neutral on a flat yield curve despite strong technicals.
• Chris Hyzy said earnings momentum matters more than higher rates and expected equity weakness to be a buying opportunity.
• AI safety and regulation debates intensified, with discussions of open-source models, liability lawsuits, and self-regulation.