US bond yields fall as tech-related stock selloff intensifies
TLT•U.S. Treasury yields fell as technology-related stocks sold off, with the 10-year yield down 4.4 basis points at 4.945% and on track for its largest monthly decline since December 2023. Amazon and Intel shares fell after concerns about AI spending and cash use.
1. Yields decline
U.S. Treasuries rose on Friday as a sharp selloff in technology-related stocks prompted investors to seek the bonds. The 10-year Treasury yield was down 4.4 basis points at 4.945%, putting it on track to fall about 35 basis points in October, its largest monthly decline since December 2023.
2. Tech shares slide
Amazon shares fell 2.2% in early trading after the company reported a sharp cash outflow and another increase in spending. Intel fell about 28% after warning it would burn cash this year, while an index of semiconductor firms declined 6.3%; the Nasdaq was down more than 2% early.
3. Other Treasury yields
The 30-year yield fell 1.3 basis points to 5.316%, and the two-year yield declined 4.8 basis points to 4.608%. The article said recent Treasury gains had halted a sharp selloff that had pushed yields to multi-decade highs as investors worried about energy costs and government debt.
