10-year Treasury note yield hits highest level since 2002 as traders brace for key bond sale
- On Wednesday, the benchmark 10-year Treasury yield climbed to about 5.35%, its highest level since 2002, as investors sold government bonds ahead of a $39 billion note auction and Federal Reserve meeting minutes.
- Persistent inflation fears and massive deficit spending drove the bond sell-off, with heavy debt issuance by tech giants funding AI-linked infrastructure projects adding pressure to borrowing costs across developed economies.
- BMO's Head of U.S. Rates Strategy Ian Lyngen said Wednesday's $39 billion supply is 'far more relevant for setting the tone in US rates,' signaling investors demand significant premiums to absorb new debt.
- Rising yields pressured equity valuations as major indices tumbled, with investors weighing higher corporate borrowing costs and reduced present value of future earnings affecting REITs and technology stocks.
- Strategists polled by Reuters expect the benchmark yield to ease to 5.00% by year-end, though traders pricing in a 78% chance of unchanged Federal Reserve rates suggest conviction behind lower-yield forecasts remains wavering.
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The sale of US bonds is slowing down, but tech entrepreneurs like Elon Musk could increase pressure again and trigger a vicious circle.
The debt crisis. The yield on 10-year US government bonds reached 5.34%, the highest since 2002
The debt crisis. The yield on 10-year US government bonds reached 5.34%, the highest since 2002.The main reasons are high inflation, the Fed's harsh policy and the growing US national debt, which has exceeded $40 trillion, or about 120% of...
The American stock indices completed the cut in the tender on Wednesday, and the participants evaluated the minutes of the September meeting of the Federal Reserve System (FRF).
Wall Street retreats from its record as stocks fall worldwide - WXXV News 25
By STAN CHOE NEW YORK (AP) — U.S. stocks pulled back from their record on Wednesday. The S&P 500 slipped 0.2%, a day after topping its prior all-time high set in August. The Dow Jones Industrial Average dropped 341 points, or 0.7%, while the Nasdaq composite fell 0.2% from its own record. Stocks felt pressure as yields swung in the...
Rising yields and an oil price of over 100 dollars per barrel at times raise new fears of inflation with more and more investors. The yield of 30-year US government bonds is currently rising to the highest level in 24 years.
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