US 10-year Treasury yield levels not unprecedented, BNY CEO says
BK•BNY CEO Robin Vince said 10-year Treasury yields around 5.25% are not historically unusual. BNY’s third-quarter profit rose 20% to $1.61 billion, or $2.34 per share, while assets under custody and administration increased 10% to $63.4 trillion.
1. Yields and economic drivers
The 10-year US Treasury yield’s rise in the July-September period was its sharpest since 1994. Vince said the move to around 5.25% had happened quickly but reflected a normalization of the yield curve, and pointed to US economic strength and increased debt supply as factors pushing rates higher.
2. BNY results and deposits
BNY’s profit applicable to common shareholders rose 20% to $1.61 billion, or $2.34 per share, in the three months ended September 30. Assets under custody and administration climbed 10% year over year to $63.4 trillion. Chief Financial Officer Dermot McDonogh said average deposits are expected to pick up in the fourth quarter alongside client activity; net interest income accounts for roughly 25% of revenue.
