Asian Bonds Decline, Dollar Jumps As Fed Hikes

Watch on YouTube ↗  |  September 17, 2026 at 05:31  |  1:35:10  |  Bloomberg Markets
Speakers
Carol Schlife — Strategist, BMO
James Bullard — Former President, Federal Reserve Bank of St. Louis; Dean, Purdue University's Mitch Daniels School of Business
Eiji Ueda — Head of Asia Pacific and Partner, Apollo
Charlotte Yang — Asia Equities Reporter, Bloomberg
Stephen Engle — Chief North Asian Correspondent, Bloomberg
Shery Ahn — Anchor, Bloomberg Television
Dan Clancy — CEO, Twitch
Deepinder Goyal — Founder, Eternal

Summary

The segment covers a Fed rate hike and hawkish market repricing, with Asian bonds under pressure, the dollar stronger, and focus shifting to the Bank of Japan. Guests discuss whether equities can absorb higher rates, AI infrastructure financing, Treasury yield risks, Japan fixed income and private-credit opportunities. Corporate topics include Twitch and GTA VI, BYD’s possible role in a U.S.-China summit, and a CATL bull-bear debate.

  • Fed delivers a 25bp hike and markets price a more hawkish path.
  • Asian bonds and front-end yields react, while the dollar posts its best day in about three months.
  • BMO’s Carol Schleif says equities can handle higher rates and highlights the AI infrastructure buildout.
  • Former St. Louis Fed President James Bullard expects one more hike and sees Treasury yields biased higher.
  • Apollo’s Eiji Ueda favors Japanese fixed income and sees private-credit opportunity as corporate financing demand rises.
  • Twitch CEO Dan Clancy discusses GTA VI, AI, and Twitch’s business outlook.
  • Stephen Engle outlines BYD’s potential summit catalyst; Charlotte Yang details CATL’s selloff bull and bear cases.
  • Market watchers focus on the BOJ decision and Asian sovereign bond yield moves.
Ideas
Carol Schlife Strategist, BMO 17:05
Higher rates won’t derail US equities.
Higher rates are absorbable because the U.S. economy is strong, earnings and the labor market are solid, and the Fed likely has only one more hike; this is a positive message for the stock market, not a reason to abandon equities.
SPY MED
Carol Schlife Strategist, BMO 19:47
AI infrastructure buildout remains a long-term theme.
Equity markets are absorbing higher rates, and the AI buildout still requires substantial infrastructure; AI companies can keep accessing debt, equity and private credit, and backlogs support continued spending even with frontier-model controversy.
AIQ MED
James Bullard Former President, Federal Reserve Bank of St. Louis; Dean, Purdue University's Mitch Daniels School of Business 68:40
Treasury yields can rise further.
Bullard expects one more Fed hike this year and says rates could go somewhat higher from here; stronger growth, the tech borrowing boom, a higher neutral rate, and unfixed fiscal deficits all put upward pressure on long-term Treasury yields.
IEF HIGH
Eiji Ueda Head of Asia Pacific and Partner, Apollo 77:35
Five-year JGBs beat bank deposits.
Higher Japanese rates create room for fixed-income returns; five-year JGBs yield far more than bank deposits, and investors are moving out of zero-rate deposits into formal investments, making Japan fixed income attractive.
5-year JGBs Japan fixed income HIGH
Eiji Ueda Head of Asia Pacific and Partner, Apollo 80:49
Private credit bridges rising corporate demand.
With inflation and higher rates, bank deposits are not growing while corporate financing demand is increasing 5-6%; this creates an opportunity for private credit, especially direct lending and more investment-grade steady private credit, to bridge capital seeking return with corporate needs.
BIZD MED
Stephen Engle Chief North Asian Correspondent, Bloomberg 85:12
BYD U.S. summit catalyst worth watching.
Stephen Engle sees a potentially important catalyst if BYD’s founder joins Xi Jinping’s U.S. summit delegation, especially as Trump has opened the door to Chinese EVs made in America; but national-security, data and Michigan auto-lobby concerns make it a developing policy setup rather than a clean directional trade.
1211.HK MED
Charlotte Yang Asia Equities Reporter, Bloomberg 90:12
CATL selloff may be overdone.
CATL bulls view the selloff as irrational and sentiment-driven; despite EV makers trying to diversify battery supply, CATL’s product quality, superior leadership, stabilized >40% share and valuation 12x below its five-year average make it a potential dip-buying opportunity.
CATL MED
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This Bloomberg Markets video, published September 17, 2026, features Carol Schlife, James Bullard, Eiji Ueda, Stephen Engle, Charlotte Yang discussing SPY, AIQ, IEF, 5-year JGBs, Japan fixed income, BIZD, 1211.HK, CATL. 7 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Carol Schlife, James Bullard, Eiji Ueda, Stephen Engle, Charlotte Yang  · Tickers: SPY, AIQ, IEF, 5-year JGBs, Japan fixed income, BIZD, 1211.HK, CATL