The 10-year U.S. Treasury yield surged to 5.36% on Wednesday, its highest intraday level since April 2002, as a global bond selloff resumed, according to The Wall Street Journal. The 30-year yield touched 5.73%, its highest since May 2002.
Major stock indexes retreated a day after the S&P 500 and Nasdaq closed at records. The Dow Jones Industrial Average fell 0.5%, the Nasdaq 0.4% and the S&P 500 0.2%, with a 5.5% drop in Caterpillar shares weighing on the Dow, according to Investopedia.
A $39 billion Treasury auction of 10-year notes later in the day drew strong demand, easing yields off their highs. The notes sold at a yield of 5.30%, with foreign investors taking a larger-than-average share, Barron’s reported.
For ordinary Americans, the 10-year yield matters more than the Fed’s benchmark rate: it sets the tone for mortgage rates, auto loans and credit-card borrowing. Housing and mortgage stocks sank to 52-week lows as borrowing costs climbed.
Yields have climbed on persistent inflation, a resilient economy, heavy government borrowing and massive AI-related corporate spending. The Federal Reserve also released minutes from its September meeting, at which it raised interest rates for the first time in three years.
Sources: The Wall Street Journal, Barron’s, Reuters, Investopedia
