Treasury yields hit a 2007 high even as inflation cools

The 10-year yield climbed to 5.30% on hot growth data as the S&P 500 slipped 0.25% to 7,651.54, with Micron's blowout and $90 oil in focus

Deepakshi Sharma

Kristal Research

1 Oct

Key takeaways — AI summary

The 10-year Treasury yield rose about 0.06 points to 5.30%, its highest since 2007, and the 30-year reached 5.64%, as strong growth outweighed softer inflation; traders cut October hike odds to roughly 35-40% from about 71% on Monday.
Core PCE rose just 0.2% in August (below the 0.3% forecast), with the yearly rate holding at 3.0% versus 3.3% expected, though a measurement change helped pull the number down; Q2 growth was revised up to 2.2% and ADP showed 90,000 private jobs added in September.
US equities were split: the S&P 500 fell 0.25% to 7,651.54, the Nasdaq rose 0.24% to 26,861.06 on mega-cap tech, and the Dow fell 0.9%; consumer staples led decliners at -1.6%.
Oil settled $1.04 higher at $90.42 on reports of a Houthi strike on Saudi Arabia's Abqaiq hub and stalled US-Iran talks; gold traded up 0.44% at $4,174 in Asia.
After the close, Micron beat with revenue of $54.23 billion (versus about $51 billion expected) and guided next quarter to $60-63 billion, though shares swung on an 86.25% margin guide and heavy capital spending plans.

Generated by Kristal AI · reviewed by the research desk

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