10-year Treasury yield hits 19-year high of 5.11% as strong US data revives Fed hike bets

A five-year-high business survey, hawkish Fed comments and a weak $70bn note sale pushed yields sharply higher; the S&P 500 fell 0.75% to 7,706 and the Nasdaq dropped 1.13%.

Deepakshi

Kristal Research & Marketing team

24 Sept

Key takeaways — AI summary

The 10-year Treasury yield jumped about 0.15 percentage points to 5.11%, its highest close since July 2007, while the 2-year hit a 2026 high of 4.94% and mortgage rates reached their highest since 2024.
US equities slipped: the S&P 500 fell 0.75% to 7,706, the Nasdaq Composite dropped 1.13% to 26,936 a day after a record close, and the Russell 2000 lost 1.77%; energy was the only S&P sector higher, up 1.04%.
Four catalysts landed together: S&P Global's business survey hit a five-year high of 58.4, Fed Governor Michael Barr said more hikes are 'likely to be needed,' a $70bn 5-year note sale drew the highest yield since 2006, and diesel export-ban reports (later called 'fake news') stirred inflation fears.
Oil rose 1.8% to $92.16 (WTI) with Brent back above $100 after US-Iran talks produced no breakthrough; the dollar reached its strongest since July and gold was roughly flat at $4,286.
Traders now price roughly a 70% chance of another Fed hike in October, up from below 10% a month ago; among movers, Paychex fell 8.7%, Expedia dropped 7.4% and McDonald's slid 4.8% to a four-year low, while Cracker Barrel rose 6.8%.

Generated by Kristal AI · reviewed by the research desk

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