From the Desk

Market insights from our investment teams

Week of  September 7, 2026

Dec Mullarkey

Managing Director, Investment Strategy and Asset Allocation
LinkedIn

Right now, there is a lot going on in the bond market, as rates zip up across developed economies. There is certainly enough to worry about. Shocks to supply chains and interruptions in energy flows are driving inflation fears. Meanwhile the demand for debt, to support government spending and also to finance a massive AI data center buildout, keeps growing. This has resulted in interest rates hitting two-decade highs in North America and also across the rest of the G7.

U.S. Treasury Secretary Scott Bessent has expressed concern, and is embarking on a buying program to rein in long-term yields. Yet interest rates continue to stay high, sparked by fundamental economic drivers and capital demand rather than some odd technical spike. It feels like we are still at the early stages of this new normal of higher rates. 

The size of government balance sheets is not going to be retraced in a hurry. The AI buildout still has a way to go.  And while AI large-language models and related chatbots receive all the attention now, humanoid robots already look like the next stage of development. And these robots come with their own hefty buildout price tag.

The future looks exciting but capital intensive. The funding to build that future will be in high demand. It seems like we are entering a new episode of higher interest rates that could last a while.

Sources: Bloomberg, The Financial Times, 2026.

The information may include statements which reflect expectations or forecasts of future events. Such forward-looking statements are speculative in nature and may be subject to risks, uncertainties and assumptions and actual results which could differ significantly from the statements. All opinions and commentary are subject to change without notice. SLC Management is not affiliated with, nor endorsing, any third parties mentioned within this article.

Market insights are based on individual author opinions and market observations. SLC Management investment teams may hold different views and/or make different investment decisions. These are observations only and are not intended to provide specific financial, tax, investment, insurance, legal or accounting advice and should not be relied upon and do not constitute a specific offer to buy and/or sell securities, insurance or investment services. Investors should consult with their professional advisors before acting upon any information posted here. 

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