Bonds teeter after US Treasuries' worst quarter since 1994
TLT•The 10-year Treasury yield rose 87.1 basis points in the September quarter, its sharpest quarterly rise since 1994, and touched 5.31% on Thursday, its highest since 2007. The 30-year yield topped 5.65%, its highest since 2002.
1. Treasury yields surge
The 10-year Treasury yield rose 87.1 basis points over the September quarter, the sharpest quarterly increase since 1994. It touched 5.31% on Thursday before settling just below 5.28%, while the 30-year yield topped 5.65%, its highest since 2002.
2. Rate expectations shift
Traders now expect at least three more Federal Reserve rate hikes before the middle of 2027, after a hike last month. Yields have surged around the world as energy costs fan inflation and investment in AI and data centers lifts expectations for growth and future short-term rates.
