{
  "id": 9705475,
  "title": "Morning Bid: When Treasuries catch Korea’s volatility bug, take cover",
  "url": "https://urgent.news/2026/09/25/morning-bid-when-treasuries-catch-koreas-volatility-bug-take-cover",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-25T04:42:28.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/economy-news/morning-bid-when-treasuries-catch-koreas-volatility-bug-take-cover-4916598"
  },
  "original_language": "en",
  "account": "Treasuries, typically seen as the safe haven for investors, have been acting strangely lately. In just two days, the benchmark U.S. 10-year yield skyrocketed to a record high of 5.2251%, a 20-basis-point increase over two days. This is the kind of sudden surge last seen when Trump's tariffs on Chinese goods sent markets into a panic. However, unlike that episode, there is no clear trigger for the current rise. The long bond also jumped 16 basis points to 5.5016%, the highest level since 2004.\n\nTreasury Secretary Yellen had previously intervened with buybacks to defend the 5.3% level, but those efforts have been largely unsuccessful. Overnight, only $4 billion of the scheduled $6 billion was purchased. When risk-free investments are costing more than 5%, it's clear that every asset class is facing a reckoning. Governments will have to pay higher borrowing costs to finance their ever-growing deficits, while big tech firms must justify their massive spending plans. Households will also feel the pinch, with higher mortgage rates driving up the cost of home ownership.\n\nThe sell-off has not been confined to the U.S. Japan's government bond yields surged to levels not seen since 1996, and Australia's 10-year yields are nearing a 15-year high. While higher yields will eventually tighten U.S. financial conditions, futures still price in a 70% chance of a Federal Reserve rate hike next month. In fact, up to 90 basis points of tightening is expected for this cycle. Even Scandinavian central banks have followed suit, with Norway's Norges Bank raising rates and Sweden's Riksbank signaling a potential rate hike by the end of the year.\n\nThe fear is that rising rates could derail the ongoing stock market bull run. However, tech investors seem largely unperturbed by the rate hikes, as Nasdaq futures remain stable. Most Asian markets were closed on Friday, but Japan's Nikkei rose 1.2%. European shares are expected to open higher, with pan-European stock futures up 0.6%. Despite oil prices remaining at $105 a barrel and the Middle East conflict far from resolution, Trump is more preoccupied with his upcoming meeting with Chinese President Xi Jinping than with the rising mortgage rates. After all, the President doesn't personally feel the impact of a 7% mortgage rate.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "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."
}