Symbolic imageUS Treasury yields ease from 2002 highs as oil dips
US Treasury yields eased on Tuesday from their highest since 2002 as oil dipped, according to Bloomberg and WSJ headlines. The selloff has run since mid-August.
On Monday, 5 October, ten-year yields rose at least seven basis points to 5.34 percent and 30-year yields to 5.7 percent, Handelsblatt reports; they stayed near those levels on Tuesday morning. Third-quarter yields rose the most in 30 years. Handelsblatt cites growth driven by AI infrastructure investment and inflation that keeps further Fed rate rises in view. The ISM services price index for September hit 74, the highest since July 2022, while the sector expanded more slowly. BMO strategist Vail Hartman reads this as rising inflation pressure alongside strong growth.
Many explanations
The FT notes that the median 10-year yield in G7 countries has risen one percentage point this year. Fed chair Kevin Warsh cited US economic strength, competition for capital and difficult geopolitics, and said yield moves tend to be "overdetermined". Break-even inflation expectations suggest central banks' credibility is intact, the FT says.
Corporate debt feels it
The FT reports that higher government borrowing costs are bleeding into the corporate debt market.
Buyers see value
Reuters headlines a PIMCO senior advisor calling Treasury yields "screaming good value".