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10-year Treasury yield leaps to fresh 19-year high after hot economic readings
Oil prices fell to a six-day low after U.S. and Iranian delegations held talks, with investors monitoring Federal Reserve remarks on future rate decisions.
On Wednesday, September 23, 2026, US shares dropped while the benchmark 10-year Treasury yield jumped to 5.054%, its highest level since 2007, after data showed business activity accelerated to a more than five-year high.
S&P Global reported the flash US Composite PMI Output Index increased to 58.4 this month, its highest level since July 2021, fueling expectations for further Federal Reserve interest rate hikes.
Fed funds futures traders are now pricing in 73% odds of an October rate hike, while the interest-rate sensitive 2-year Treasury yield rose to 4.862%, marking its highest level since June 2024.
Higher interest rate expectations pushed the dollar to multi-week highs against the euro, which dropped 0.5% to $1.1389, as analysts noted the data underscores the Federal Reserve's hawkish policy stance.
Brent crude oil futures for November delivery fell 0.8% to $98.49 a barrel, marking the longest losing streak since August 2025, as markets balance economic data against ongoing geopolitical uncertainties.