On Sept. 29, U.S. stocks slipped as the 10-year Treasury yield hit 5.28% intraday.
Why it matters: Higher long-term yields can raise borrowing costs for mortgages and corporate debt, while also pressuring equity valuations. That makes the bond selloff a direct risk for stocks and rate-sensitive sectors.
- On Sept. 29, the Dow fell more than 100 points as Treasury yields climbed.
- AP reported the 10-year Treasury yield touched 5.28% intraday, its highest level since 2002.
- Reuters reported the 30-year Treasury bond reached its highest level since June 2002.
- AP said the move followed several sessions of rising yields, with oil prices adding to inflation concerns.
U.S. stocks slipped again on Sept. 29 as Treasury yields kept climbing, extending a bond-market selloff that has pushed long-term rates to levels not seen in decades.
AP reported that the Dow was down more than 100 points and that the 10-year Treasury yield touched 5.28% intraday, according to Tradeweb. Reuters said the 30-year Treasury bond hit its highest level since June 2002.
The market reaction matters because higher Treasury yields increase the discount rates investors use to value stocks, while also raising borrowing costs for mortgages and corporate debt, AP said.
The latest move came after several sessions of rising yields in late September. AP said the 30-year Treasury yield had climbed to 5.55% on Sept. 28, while Reuters and AP pointed to elevated oil prices as adding to inflation concerns.
AP also reported that the S&P 500 was on track for a slight monthly loss at the end of September, showing how the bond move was weighing on the broader market.
By the numbers
- 5.28% - intraday high for the 10-year Treasury yield, per AP
- 5.55% - Sept. 28 level for the 30-year Treasury yield, per AP
- More than 100 points - Dow's decline on Sept. 29, per AP