U.S. Treasury yields hit 24-year highs

S. and European government bond yields climbed as the global bond selloff resumed. Treasury yields hit levels not seen in more than 24 years. 361%, its highest intraday level since April 2002, according to Tradeweb.

730%, the highest since May 2002. 954%. Danske Bank analysts said there was a risk of further pressure on long-dated Treasurys. S.

Treasury curve given not only supply of Treasurys but also from the hyperscalers," Jens Peter Sorensen, chief analyst at Danske, said in a note. "We do see the risk of 10-year and 30-year Treasurys hitting 6% as investors demand a higher premium for the long end," he said. Investors were waiting for a $39 billion auction of 10-year Treasurys. High yields have drawn buyers in recent tenders as Washington's borrowing costs have risen.

Attention also turned to minutes of the Federal Reserve's September meeting, when it raised interest rates for the first time in three years. The Fed is expected to keep rates on hold this month, although inflation data due next week could change that. S. inflation, resilient activity and fiscal headwinds have pushed markets to price in a higher path for policy rates.

It added that rising prices, higher borrowing costs and geopolitical uncertainty are still creating challenges, even as economic growth has remained surprisingly resilient. The firm said sticky inflation and resilient growth point to potential further upward pressure on rates. Market expectations for another Fed rate increase in October have swung since then, with markets now assigning a 22% probability to a rate increase this month, down from around 70% at the beginning of last week, Geopolitics remains in focus for global bond markets after Iran intensified attacks on tankers in the Strait of Hormuz in recent days, helping drive oil prices higher. 9 a barrel.

State Street said the geopolitical overhang and the associated elevated price pressures are also pushing government bond yields higher. Simon Ballard, chief economist at First Abu Dhabi Bank, said in a note that continuing pressure is weighing on sentiment and broad risk appetite. France's budget talks, along with nationwide protests in the country, are unsettling markets in Europe and leaving French government bonds, or OATs, underperforming in the eurozone. 507%.

Mitch Reznick, head of cross-border credit at Federated Hermes Limited, said in a note that France is quickly becoming the focus of the European bond selloff. The 10-year OAT-Bund yield spread was last at 139 basis points, below Friday's peak just shy of 159 basis points, according to Tradeweb. Reznick said the pace of the move matters, with investors moving out of French government bonds and into German Bunds, widening the spread further.

In an interview with The Wall Street Journal, France's Finance Minister Roland Lescure said the government is prepared to use special constitutional powers and bypass parliament to pass billions in spending cuts if negotiations stall over the 2027 budget. He also said he was willing to negotiate on all aspects of the budget, but has two red lines: keeping the maximum budget deficit at 5% of gross domestic product and avoiding any changes that hurt growth. 65 billion) in savings by 2032 "directionally targets fiscal discipline, yet implementation faces steep constitutional hurdles," Patrick Munnelly, market strategist at Tickmill Group, said in a note.

October 07, 2026 09:59 ET (13:59 GMT)