10-year Treasury yield briefly tops 5% amid global bond selloff

Sep 15, 2026 13:37 (37d ago)

The 10-year U.S. Treasury yield briefly topped 5.04%, its highest level since July 2007, before easing to 4.97% ahead of the Federal Reserve decision.
Markets priced roughly a 93% probability of a 25-basis-point rate increase, while real yields reached 2.55% and each 100-basis-point increase was estimated to add about $100 billion to annual federal interest expense.
Bond yields reached multi-decade highs across major economies, while China’s 10-year yield stood at 1.69% and its loan prime rates remained at 3.00% and 3.50%.

A global bond selloff pushed borrowing costs to multi-decade highs across the United States, United Kingdom, France, Germany and Japan. The 10-year U.S. Treasury yield briefly exceeded 5.04% on Tuesday, its highest level since July 2007, before easing to 4.97% on Wednesday ahead of the Federal Reserve's policy decision. Higher oil prices, persistent inflation, fiscal deficits, government debt supply and hawkish central-bank expectations contributed to the rise, while lower oil prices, weak New York manufacturing data and renewed bond buying provided some relief. Markets priced roughly a 93% probability of a 25-basis-point Federal Reserve increase, which would be the first hike since 2023, and expected another increase in December. BlackRock CIO Rick Rieder called a 5% 10-year yield historically attractive but said supply pressures and refinancing risks justified an underweight in longer-term Treasuries. China remained an outlier, with a 1.69% 10-year government bond yield and accommodative policy.