BX · 10-Q · 2026Q2 · Full report

Interest Rate Environment

Blackstone Inc. · 2026-08-07 · Importance 15 · Surprise 14

U.S. inflation remained above the Federal Reserve’s 2.0% long-term target, with CPI up 3.5% year-over-year in June 2026 versus 3.3% in March, partly due to elevated first-half energy prices. The Federal Reserve held the federal funds target range at 3.50%–3.75% from December 2025, while the 10-year Treasury yield rose 15 basis points to 4.47% in the second quarter and reached 4.72% on July 31, 2026. International policy diverged: the ECB raised its deposit rate 25 basis points to 2.25%, the Bank of Japan raised its policy rate to 1.0%, and the Bank of England and People’s Bank of China held rates at 3.75% and 3.0%, respectively.

Key facts

• The Bank of Japan increased its policy rate to 1.0% in June from 0.75%. source
• High yield spreads tightened 32 basis points in the period referenced. source
• The ten-year U.S. Treasury yield increased 15 basis points in the second quarter of 2026 to 4.47% and has since risen to 4.72% as of July 31, 2026. source
• Real Estate segment noted elevated base rates and volatility from the ongoing conflict in the Middle East continuing to weigh on transaction activity in Q2 2026. source
• The Federal Reserve has held the federal funds target range steady at 3.50-3.75% since December 2025. source
• Three-month SOFR was unchanged quarter-over-quarter at 3.68%. source
• The Bank of England left its bank rate unchanged at 3.75% through the second quarter. source
• The People’s Bank of China left its rate unchanged at 3.0% for its one-year prime loan. source