U.S. Treasuries Record Worst Quarterly Performance Since 1994

Key Facts

U.S. Treasuries recorded their worst quarterly performance since 1994 as of the end of Q3 2026. Seeking Alpha reported that the historic decline was driven by a significant surge in yields across the curve, with the benchmark 10-year Treasury yield reaching two-decade highs.

The sell-off is linked to persistent inflationary pressures and the market adjusting to a higher-for-longer interest rate environment under the current Federal Reserve leadership. This quarterly decline in the world's benchmark safe-haven asset signals a tightening in financial conditions and a broad repricing of risk.