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U.S. Bond Yields Surge Above 5% as Rate-Hike Expectations Rise
Weak demand at a $70 billion five-year auction helped push the 10-year yield above 5%, raising borrowing costs and pressuring stocks, officials said.
- On Wednesday, US Treasury yields for nearly all notes and bonds climbed above 5% for the first time since 2007, with the five-year yield crossing that threshold for the first time in nearly two decades.
- Robust economic data released Wednesday showed US business activity expanding at its fastest pace in over five years, prompting investors to price in an interest rate hike next month.
- US stocks sank Wednesday following the yield spike, with the S&P 500 falling 0.8% and the Nasdaq composite dropping 1.1%; the US Treasury's $44 billion 7-year note auction saw the lowest demand since 2018.
- Investors are diversifying away from expensive stocks to lock in returns on 'risk-free' assets, including 10-year TIPS offering a 2.78% real yield, the highest since 2008.
- Chinese President Xi Jinping arrived in Washington on Thursday for a summit with President Donald Trump, while Treasury Secretary Scott Bessent indicated the US is open to extending the trade truce expiring November 10.
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30-year US public debt yield reached new multi-year peaks on the last day of a difficult week
What the bond market is telling us as yields spike to 2-decade highs
The bond market is saying something that all investors should be paying attention to. Key bond yields have been drifting higher for years, but the recent sell-off in US Treasurys has accelerated in 2026. Then on Wednesday, investors really hit the gas, as fears about a hot economy, a spiraling fiscal situation, and waning demand […]
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Total News Sources138
Leaning Left15Leaning Right31Center32Last UpdatedBias Distribution41% Center
Bias Distribution
- 41% of the sources are Center
41% Center
L 19%
C 41%
R 40%
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