Treasuries snap back as investors step in after 10-year yield hits 24-year high
TLT•U.S. Treasury yields fell on Thursday after the 10-year yield climbed to 5.3445%, its highest level since April 2002. The 10-year yield later fell to 5.243%, while the 2-year yield dropped 8.94 basis points to 4.798%.
1. Treasuries reverse losses
Investor buying reversed an early selloff in U.S. Treasuries after 10- and 30-year yields reached their highest levels since spring 2002. The move followed a sharp quarterly rise in 10-year yields and economic data that pointed to persistent inflation pressures.
2. Short-term yields fall
The 2-year yield fell 8.94 basis points to 4.798%, its largest single-session decline since August 2025. The 10-year yield dropped 5.02 basis points to 5.243% after reaching 5.3445%, while the 30-year yield fell 3.21 basis points to 5.6069%.
3. Investors watch Fed
Traders and analysts cited improved risk-reward after recent yield increases and crowded positioning as factors behind the rebound. Investors were also monitoring Federal Reserve officials’ comments and awaiting Friday’s U.S. September nonfarm payrolls report.
