BNY CEO Robin Vince said 10-year Treasury yields near 5.25% are not unprecedented, calling the move a normalization after a period of unusually low rates. BNY reported third-quarter profit of $1.61 billion, up 20%, and expects average deposits to rise in the fourth quarter.
The 10-year US Treasury yield rose sharply in the July-September period, its largest quarterly increase since 1994. BNY CEO Robin Vince said yields around 5.25% were not unusual historically and described the move as a rapid normalization of the yield curve. He said US economic strength was one of the primary drivers of inflation and higher rates.
A hot US inflation report increased rate-hike bets and concerns about borrowing costs for the capital-intensive AI industry. This week's selloff in AI stocks eased pressure on bonds as investors sought government debt, and the 10-year yield was headed for its largest one-day decline since early August 2025 on Thursday. Vince said weak financial structures in the AI landscape would get exposed over time.
BNY reported third-quarter profit applicable to common shareholders of $1.61 billion, up 20% year over year, and assets under custody and administration of $63.4 trillion, up 10%. Chief Financial Officer Dermot McDonogh said average deposits are expected to pick up in the fourth quarter along with client activity. Net interest income accounts for roughly 25% of BNY's revenue, he said.
