The 10-year Treasury briefly hit 5.12% on Sept. 24, its highest intraday level in 19 years.
Why it matters: Higher Treasury yields lift borrowing costs for mortgages, corporate debt and other financing. The move also can pressure equity valuations and ripple through stocks, currencies and other rates-sensitive assets.
- The 10-year Treasury yield traded around 5.12% on Sept. 24, an intraday 19-year high.
- The 30-year Treasury yield rose to about 5.44%, its highest level since 2004.
- Reuters said the selloff reflected inflation worries, heavy government debt and expectations for more Federal Reserve tightening.
- Reuters said U.S. stock futures and major indexes were under pressure as yields rose.
U.S. Treasury yields kept climbing on Sept. 24, extending a bond-market selloff after the 10-year yield briefly reached 5.12%, an intraday high not seen in 19 years. Reuters said investors were selling bonds on worries about inflation, heavy government debt and expectations for more Federal Reserve tightening.
The 30-year Treasury yield rose to about 5.44%, Reuters reported, its highest level since 2004. The article did not confirm closing levels.
The Federal Reserve says the 10-year Treasury is a key benchmark for long-term borrowing costs, including mortgages and corporate debt, on its H.15 rate release. That makes moves in the benchmark closely watched by companies, consumers and investors.
Reuters also reported that U.S. stock futures and major indexes were under pressure as the yield move hit rates-sensitive assets. Treasury data and market pricing that day showed the selloff was still unfolding during the session, not just at the close.
By the numbers
- 5.12% - Intraday high for the 10-year Treasury yield on Sept. 24.
- 5.44% - Level reached by the 30-year Treasury yield, its highest since 2004.
Yes, but: Reuters described intraday levels, not final closing yields, so the session's end point was still unsettled.
What's next: Investors will watch upcoming U.S. inflation data and the Fed's next policy decision for clues on whether the yield surge continues.