Bonds Sell Off Again, Sending Yields to Fresh 24-Year Highs

Dow Jones
Oct 07

Treasurys are selling off again ahead of today's release of Federal Reserve minutes, sending yields on 10-year and 30-year bonds to new multidecade highs.

The 10-year yield rose to 5.337% in recent trading, on track for its highest settle since April 2002. The 30-year yield climbed to 5.716%, on pace for its highest settle since May 2002, according to Tradeweb data.

Bond yields rise as their prices fall. The Treasury Department is set to hold an auction of 10-year notes later today, which will test demand for government debt.

Multiple factors "are combining for a challenging mid-week trading session for fixed income," analysts at Societe Generale wrote this morning.

The bank's analysts cited various factors: The possibility of hawkish thinking from Fed rate-setters, the rebound in oil prices, U.S. stocks hitting fresh highs, and reports of fresh funding plans from SpaceX.

Technology giants have been on a huge borrowing spree to fund AI investments, a factor that has softened investors' demand for government debt.

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