{
  "id": 8077479,
  "title": "US 10-year Treasury yield hits 5%: Why bond market volatility remains low despite higher rates",
  "url": "https://urgent.news/2026/09/17/us-10-year-treasury-yield-hits-5-why-bond-market-volatility-remains",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-17T18:29:16.000Z",
  "source": {
    "name": "Hindustan Times - World News",
    "slug": "hindustan-times-world-news",
    "url": "https://www.hindustantimes.com/world-news/us-news/us-10-year-treasury-yield-hits-5-why-bond-market-volatility-remains-low-despite-higher-rates-101789667790239.html"
  },
  "original_language": "en",
  "account": "The US 10-year Treasury yield has reached 5%, but the bond market has not experienced a similar surge in volatility. Options traders are anticipating moderate fluctuations in 10-year Treasury rates, even though the benchmark yield hit 5%. Three-month options on 10-year rates currently reflect around 79.5 basis points of annualized volatility, which is lower than in October 2023 when yields last approached 5%. Investors seem less anxious about the yield rise compared to 2023. Analysts attribute the current yield increase more to robust US economic growth than to sudden concerns about the bond market or economy. The 10-year yield crossed 5% for the first time in three years last week, following the Federal Reserve's latest policy decision. So far, the selloff in Treasuries has been orderly, not showing signs of becoming disorderly. Chip Hughey, managing director of fixed income at Truist Wealth, noted that the yield rise has been gradual over about seven months, and a slow increase is easier for markets to absorb. The lower volatility can be partly attributed to investors' focus on a stronger US economy rather than just government debt and budget deficits. Amrut Nashikkar, head of derivatives strategy at Barclays, explained that the Treasury selloff is driven more by a stronger economic outlook than concerns about demand for US government bonds. Markets initially expected the Federal Reserve to cut rates in 2026 but now anticipate several rate hikes and a higher long-term policy rate. As investors become more confident that the Fed will keep rates higher for longer, there may be less uncertainty about monetary policy's overall direction, which could help Treasury yields remain high without experiencing sharp ups or downs. However, uncertainty remains regarding the Federal Reserve's decisions at its upcoming meetings. The increase in Treasury yields is partly due to expectations that short-term interest rates will remain higher for a longer period. Additionally, the term premium, the extra return investors demand for holding long-term bonds amidst uncertainty, has increased but not as much as expected for short-term rates, indicating growing confidence that the US economy can handle higher interest rates without significant economic turmoil. Strong US corporate earnings and investor confidence in corporate profits are also contributing to maintaining lower bond-market volatility.",
  "summary": "US 10-year Treasury yield hits 5% as strong economic growth and higher rate expectations keep bond market volatility low despite rising yields.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "CNBC",
        "title": "A breakout in the 10-year Treasury yield could hold back stocks if it reaches this level",
        "url": "https://urgent.news/2026/09/17/a-breakout-in-the-10-year-treasury-yield-could-hold-back-stocks-if-it",
        "published": "2026-09-17T19:13:00.000Z"
      },
      {
        "outlet": "Straits Times Business",
        "title": "Tech leads US stocks to higher close as oil eases, Treasury yields dip",
        "url": "https://urgent.news/2026/09/17/tech-leads-us-stocks-to-higher-close-as-oil-eases-treasury-yields-dip",
        "published": "2026-09-17T21:19:18.000Z"
      },
      {
        "outlet": "The Business Times - Companies & Markets",
        "title": "US stocks: Tech leads Wall Street to higher close as oil eases, Treasury yields dip",
        "url": "https://urgent.news/2026/09/17/us-stocks-tech-leads-wall-street-to-higher-close-as-oil-eases",
        "published": "2026-09-17T21:43:07.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}