---
title: "Ayub: Long-Term Inflation Unlikely to Sustain Yields"
description: "Bonds remained in focus as Treasuries stabilized after a bruising selloff. This is as optimism for a diplomatic breakthrough in the Iran war faded amid surging oil prices and mounting Fed rate hike bets. Mehvish Ayub, Bank of Singapore's Head of Managed Solutions Advisory in Dubai spoke to Bloomberg’s Abeer Abu Omar on Horizons Middle East & Africa the market movements. (Source: Bloomberg)"
section: market-watch
published: 2026-09-29T05:07:02.044812+00:00
canonical: https://valorandventures.media/article/3a475149-1fbb-4f16-895c-28c1516d461c
publisher: "Valor & Ventures Media"
source: "Bloomberg"
source_url: https://www.bloomberg.com/news/videos/2026-09-29/ayub-long-term-inflation-unlikely-to-sustain-yields-video
access: free
---

# Ayub: Long-Term Inflation Unlikely to Sustain Yields

*Bonds remained in focus as Treasuries stabilized after a bruising selloff. This is as optimism for a diplomatic breakthrough in the Iran war faded amid surging oil prices and mounting Fed rate hike bets. Mehvish Ayub, Bank of Singapore's Head of Managed Solutions Advisory in Dubai spoke to Bloomberg’s Abeer Abu Omar on Horizons Middle East & Africa the market movements. (Source: Bloomberg)*

## Executive Summary

A period of intense selling in the sovereign debt markets has given way to a temporary stabilization of U.S. government bonds. According to a recent Bloomberg broadcast, this market consolidation occurs against a backdrop of intensifying geopolitical friction and shifting macroeconomic expectations. The initial hope for a diplomatic resolution to the conflict involving Iran has deteriorated, prompting a sharp increase in energy costs and fueling expectations that the Federal Reserve will implement further interest rate hikes. Amid these volatile conditions, financial experts are analyzing whether the current trend of elevated yields can be maintained over the long term. In an interview on Bloomberg’s regional broadcast covering Middle Eastern and African market trends, Mehvish Ayub, who directs the Dubai-based portfolio advisory division for the Bank of Singapore, offered perspective on these shifting dynamics. Ayub discussed the recent performance of government debt, noting that the recent stabilization follows a period of significant depreciation. Despite the pressure from rising energy costs and the corresponding fears of persistent inflation, the analysis suggests that long-term inflationary pressures may not be robust enough to support these heightened bond yields indefinitely. The temporary relief in the Treasury selloff indicates that investors are balancing immediate geopolitical anxieties against broader, long-term economic trends. The intersection of escalating energy prices and central bank policy remains a primary driver of market uncertainty, the outlet reports. As diplomatic efforts to resolve the Iranian conflict stall, the resulting spike in oil prices threatens to complicate the central bank's inflation-fighting strategy. This has led market participants to increase their wagers on additional monetary tightening by the Federal Reserve. However, the core argument presented by Ayub suggests a disconnect between short-term supply-side shocks, such as energy spikes, and the structural drivers of long-term yields. If long-term inflation fails to establish a permanent foothold, the current upward pressure on yields may eventually subside. For corporate executives, military veterans in leadership, and entrepreneurial founders, these macroeconomic shifts carry significant strategic implications. Fluctuations in government bond yields directly influence the cost of capital, shaping corporate borrowing strategies and long-term investment planning. Furthermore, the combination of geopolitical risk in the Middle East and evolving monetary policy highlights the necessity for organizational resilience in an era of heightened volatility. Understanding whether current market yields are sustainable helps business leaders navigate funding environments and manage risk exposure during periods of global instability.

## Article

Bonds remained in focus as Treasuries stabilized after a bruising selloff. This is as optimism for a diplomatic breakthrough in the Iran war faded amid surging oil prices and mounting Fed rate hike bets. Mehvish Ayub, Bank of Singapore's Head of Managed Solutions Advisory in Dubai spoke to Bloomberg’s Abeer Abu Omar on Horizons Middle East & Africa the market movements. (Source: Bloomberg)
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Bloomberg

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Originally published by Bloomberg: https://www.bloomberg.com/news/videos/2026-09-29/ayub-long-term-inflation-unlikely-to-sustain-yields-video