Why Treasury yields are ripping higher
Data: FactSet; Chart: Axios/Matt Phillips Treasury yields are soaring, with the 30-year Treasury bond climbing to its highest level since 2004 Thursday. The selloff in bonds started to accelerate Wednesday after a sizzling early report on the economy in September. The big picture: For the bond market, these moves have been big. Bigly even. On Thursday morning, the 30-year yield rose as high as…
Treasury yields are surging, with the 30-year bond hitting its highest level since 2004 on Thursday. This surge began Wednesday following a strong September economic report. The 30-year yield reached 5.44% and the 10-year yield climbed to 5.13% on Thursday. This marks the largest weekly increase since April 2025, during the Trump administration's tariff announcement.
The bond market's recent volatility stems from a mix of strong economic data and persistently high inflation. Data center-related borrowing is also contributing to rising rates, as tech companies vie for investor funds. The September survey of corporate purchasing managers showed robust growth in manufacturing and services industries, coupled with rising costs.
This inflationary pressure is unsettling bond investors, driving them to sell Treasurys and push yields higher. The Federal Reserve may need to raise interest rates to curb inflation, with a 50% chance of quarter-point hikes at October and December meetings. Meanwhile, a potential U.S. diesel export ban is raising uncertainty about its impact on inflation, with some analysts predicting higher prices for other refined products like gasoline.
Written by urgent.news from Axios's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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