US bond yield on the 10-year Treasury tumbled to 4.97 per cent from 5.13 per cent late Wednesday and from more than 5.30 per cent earlier this month. The yield on the benchmark US 10-year Treasury note fell 19.3 basis points to 4.953 per cent and was on track for its biggest daily drop since March 10, 2023. The yield had risen to 5.3645 per cent on October 7, its highest since April 2002. The yield on the 30-year bond tumbled 15 bps to 5.287 per cent and was on pace for its biggest daily drop since August 2024. The 2-year US Treasury yield, which typically moves in step with interest rate expectations for the Fed, stumbled 18.5 bps to 4.638 per cent, on pace for its biggest decline since August 2025. These are major moves for the bond market.
Yields have been generally climbing there because of worries about the government’s big debt load and strained budget. Violent protests across France have raised pressure on the government to increase spending, which could add further to its debt. Worries about big government debt are weighing on almost every developed economy in the world, including the United States. Such concerns, along with high inflation, signals of a still-strong U.S. economy and other factors, have pushed yields in the U.S. bond market recently to their highest levels in decades.
