The 10-year U.S. Treasury yield fell from 5% to 4.93% after the U.S. raised its benchmark interest rate, easing fears of a broad government-bond sell-off as yields also declined in South Korea, Germany and Japan. The Federal Reserve’s renewed emphasis on price stability helped revive bond demand as some inflation concerns receded, while Fed governor Kevin Warsh said inflation had been too high for too long. Analysts nevertheless expect upward pressure to persist because the U.S. fiscal deficit remains unresolved. Outstanding U.S. Treasury debt surpassed $40 trillion on August 18, and interest costs reached $931 billion during the current fiscal year, October 2025 through July 2026. The Congressional Budget Office projects a $4 trillion fiscal deficit over 10 years, $900 billion above its February forecast.