10-year Treasury yield closes at 5.292%, highest since May 2002; largest quarterly gain since 1994
What happened
The benchmark 10-year Treasury yield closed Wednesday at 5.292% (intraday peak 5.304%), its highest close since May 2002, surpassing its 2007 intraday peak of 5.303%. The 30-year yield also rose to 5.638%, its highest level since June 2002. The selloff resumed in afternoon trading even though the August core PCE came in cooler than expected at 3.0% annualized, because Q2 GDP was revised up sharply to 2.2% from 1.5% and September ADP payrolls beat at +90,000. The 10-year's quarterly gain was its largest since Q1 1994, per Dow Jones Market Data. Stocks finished mixed: Dow -0.9% (-441 pts), S&P 500 -0.3%, Nasdaq +0.2%. October Fed-hike odds fell further to ~37% from ~71% a week ago.
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Start your free 14-day trialWho’s affected
- Broad U.S. equities — higher long-end yields pressure equity multiples, especially growth/tech and rate-sensitive sectors (utilities, REITs, small caps); financials benefit from steeper curves; mortgage and corporate borrowing costs move with the 10-year. Equal-weight S&P 500 struggled even as mega-cap tech held up (Roundhill Mag 7 ETF +0.4%).