U.S. Treasury yield falls to 4.953% as tech stocks retreat
Key Facts
The 10-year U.S. Treasury yield closed at 4.953% on Thursday, Oct. 22, down 0.193 percentage points from 5.146% in the previous session, according to Portfolio Terminal data. It was the first close below 5% since Sept. 22, according to published market data. The decline came during a session in which technology stocks fell, as investors moved into U.S. bonds. The Associated Press linked the drop in yields to investor concerns that high interest rates could weigh on the AI stock boom. But the move did not continue at the same pace: the yield rose to 4.988% at the close on Oct. 23, up 0.035 percentage points.
Stock moves reflected the pressure on the technology sector during the Oct. 22 session, with the Nasdaq Composite falling 2.6% and the S&P 500 dropping 1.2%, its worst daily performance since July, according to the Associated Press. Concerns centered on companies tied to AI investment and how that investment is financed. CoreWeave shares fell 10.1% after the company’s borrowing to buy Nvidia chips and lease them to customers through cloud computing services raised investor concerns about its debt. The news agency said the stock had been volatile in recent weeks amid those concerns. The decline in stocks, alongside falling yields, showed a shift toward bonds as investors faced pressure from multiple directions.
Demand for Treasuries also came as French bonds were under pressure, a striking contrast in trading marked by risk aversion. Axios reported that the French 10-year bond yield rose 0.08 percentage points during trading on Oct. 22 to 5.07% at 11:30 a.m. Eastern time, its highest level in 24 years. The news agency described Thursday’s session as one in which money moved into bonds in most countries, with France the exception. A former U.S. Treasury official said U.S. bonds benefited from deteriorating French debt dynamics and turmoil in the bond market. The official added that market participants continued to treat Treasuries as a safe haven.
At the same time, concerns about war with Iran supported oil prices, adding a countervailing factor to demand for safe-haven assets. The Associated Press linked the rise in oil to fears of war and said market tension helped push Treasury yields lower. On economic activity, the S&P Global Flash Composite PMI fell to 57.6 in October from 58.4 in September, but remained in strong-growth territory, according to the company. Consumer confidence also held steady at 48 points in October, compared with 48.1 in September, after the preliminary October reading was revised up from 46.3. These readings put the move in yields in the context of both market concerns about financing costs and signs of continued economic activity.
The impact of the lower yield on the housing market was evident in the average rate on 30-year fixed mortgages, which fell to 7.32% in the week ended Oct. 22 from 7.40% the previous week, according to the Associated Press. Even so, the average remained above the 6.19% recorded a year earlier. The news agency explained that mortgage rates generally track the 10-year Treasury yield. Attention now turns to the advance report on durable goods orders and new home sales, scheduled for release on Oct. 27 and covering August 2026, according to the U.S. Census Bureau’s calendar. The Federal Reserve will hold its meeting on Oct. 27 and 28, with a press conference on Oct. 28; investors, according to futures pricing cited by the Associated Press, expected rates to remain unchanged at the next meeting and to rise in December.