30-year Treasury yield rose to 5.561%, highest since June 2002 (24-year high); 10-year settled at 5.241%, its 7th new 19-year-high close this month — S&P -0.8%, Nasdaq -0.9%, Dow -347 (WSJ Monday close)
What happened
On Monday, September 28, 2026, the 30-year U.S. Treasury yield rose to 5.561% — a 24-year high, last seen in June 2002 — marking its fifth consecutive day of gains and a 0.265-percentage-point rise over five sessions, per Dow Jones Newswires/Morningstar data. The 10-year yield settled at 5.241%, its highest level since June 2007 and its 7th new 19-year-high close this month; the 2-year rose to 4.922%, highest since May 2024. The bond selloff continued amid conflicting U.S.-Iran headlines, with oil volatile after Trump rejected Iran's Hormuz ceasefire proposal, and Fed Governor Lisa Cook warning of continuing inflationary pressure from the AI build-out. U.S. equities fell: the S&P 500 lost 0.8%, the Nasdaq Composite fell 0.9%, and the Dow dropped 347 points (about 0.7%).
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- Rate-sensitive sectors bore the brunt: real estate (-0.38%), utilities (-0.65%), and bond-proxy names lose relative income appeal as risk-free yields rise; regional and small-cap banks face margin and valuation pressure; homebuilders and mortgage-dependent names suffer as the 30-year fixed mortgage rate topped 7%. High-multiple growth and technology stocks (information technology -0.70%, communication services -1.67%, consumer discretionary -1.58%) face discounted-cash-flow compression. Financials (-1.14%) were mixed: higher long yields can help net interest income but recession/credit fears weighed. Energy (+0.22%), health care (+0.29%), and consumer staples (+0.40%) were the only S&P sectors to close higher. Precious metals sold off on rising real yields: gold -3.45% to $4,172.30/oz, silver -4.98%.