30-Year U.S. Treasury Yield Rises to 5.6%, Highest Since 2002
The 30-year U.S. Treasury yield advanced for a sixth consecutive trading session, touching 5.62% — its highest level since the dot-com bust of 2002.
Also, the benchmark 10-year US Treasury inched higher to 5.25%, reaching its highest level since 2007. The rapid climb in yields has placed significant strain on equities, and even as oil prices retreated, investors remained uneasy about rising capital costs.
Selling has spread across the long end of the curve as wariness mounts over additional rate hikes by the Federal Reserve (FRB). In the previous session on the 28th, U.S. Treasuries were also sold off, with the benchmark 10-year yield briefly touching 5.27%.
Market data showed that yields on both the 10-year and 2-year notes continued to climb, with upward pressure on rates extending across the entire Treasury market.
According to CME FedWatch, which tracks rate futures market pricing, the probability of a rate hike at the next Federal Open Market Committee (FOMC) meeting scheduled for October 27–28 has risen to approximately 68%, up from 55% just one week earlier.
Behind the intensifying rate-hike expectations is concern that oil prices, elevated amid persistent Middle East uncertainty, will rekindle inflationary pressures.
The prevailing view in the market is that if energy prices remain stubbornly high and push overall prices upward, the Fed will have little choice but to maintain its tightening stance.
The Dow Jones Industrial Average fell 131.59 points on Tuesday to close at 51,349.92, with the S&P 500 and Nasdaq Composite also closing lower.
The Philadelphia Semiconductor Index bucked the trend, rising 1.32% to close at 12,629.16. Oil prices pulled back from recent highs, with Brent Crude settling at $95.64 per barrel.
Market attention is now turning to two critical economic data releases on the horizon. Investors are closely watching the Personal Consumption Expenditures (PCE) Price Index — the Federal Reserve’s preferred inflation gauge — scheduled for release on Wednesday, followed by the official jobs report on October 2.
These two datasets will provide crucial guidance for the Fed’s future rate decisions and will also shape the next move in Treasury yields.
All three major U.S. indexes closed lower on Tuesday (29th), with the Dow Jones Industrial Average falling 131.59 points to settle at 51,349.92; the S&P 500 slipped 12.85 points to close at 7,670.84; and the Nasdaq Composite declined 22.84 points to end at 26,797.54.
Across the four major U.S. indexes, a clear rotation pattern emerged. The Nasdaq Composite, dominated by large-cap technology names, posted a modest 0.08% decline, suggesting investors are not broadly exiting risk assets but are making selective portfolio adjustments.
The strength in the Philadelphia Semiconductor Index reflects relatively optimistic sentiment toward the semiconductor sector’s outlook, with capital still willing to flow into related stocks even amid an unfavourable rate environment. Interest Rates on Nigerian OMO Bills Crash Below 18%
