{"id":81923,"date":"2026-09-28T07:05:36","date_gmt":"2026-09-28T11:05:36","guid":{"rendered":"https:\/\/stateofthenation.info\/?p=81923"},"modified":"2026-09-28T07:05:36","modified_gmt":"2026-09-28T11:05:36","slug":"huge-waving-red-flag-bond-market-rout-continues","status":"publish","type":"post","link":"https:\/\/stateofthenation.info\/?p=81923","title":{"rendered":"

HUGE WAVING RED FLAG!!! Bond Market Rout Continues<\/b><\/h1>"},"content":{"rendered":"

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\"\"Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Aug. 24, 2026. <\/span>Brendan McDermid | Reuters<\/span><\/h5>\n
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Treasury yields were trading at multidecade highs on Thursday, as investor bets on another rate hike from the Federal Reserve mounted.<\/p>\n

The 30-year Treasury bond yield was last about 10 basis points higher, hitting a high of 5.501%, a level not seen since June 2004. The benchmark 10-year Treasury note yield, which is tied to rates on mortgages, surged more than 10 basis points to 5.223%, to levels not reached since June 2007. The 2-year note yield rose more than 4 basis points to 4.941%.<\/p>\n

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One basis point equals 0.01%, and yields and prices move in opposite directions.<\/p>\n<\/div>\n

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Global bonds also sold off. Japan\u2019s 10-year JGB yield<\/a> rose its highest since August 1996.\u00a0U.K. Gilts and German Bunds also moved higher, with yields on various European bonds hitting fresh multi-year highs.<\/p>\n

Thursday\u2019s moves build on a U.S. Treasury rout that took place Wednesday. The 10-year Treasury yield had its biggest one-day jump since April 7, 2025 as traders reacted to stronger-than-expected U.S. economic data, hawkish commentary from a Federal Reserve official and high oil prices.<\/p>\n

\u201cThe combination of fiscal, economic, geopolitical, and supply-side inflation pressures converging has bond markets in less familiar territory. The recent rise in yields can no longer be attributed simply to concerns over the deficit,\u201d said from Mike Sanders, head of fixed income at Madison Investments.<\/p>\n

The data drove expectations of more rate hikes, with traders last pricing in a more-than-75 % chance that the Federal Open Market Committee will increase rates again at its October meeting, per the CME Group\u2019s FedWatch tool<\/a>. That compares to a roughly 49% probability just a week ago.<\/p>\n

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\u201cWith markets pricing in four rate hikes through next year, the Fed is being pushed toward tighter policy at a time when the risk of a policy mistake is rising,\u201d he added.<\/p>\n

Michael Barr, a member of the Fed\u2019s Board of Governors, said in a speech on Wednesday that \u201cfurther policy adjustments\u201d are likely to come to bring inflation down to target. Speaking in London on Thursday, New York Federal Reserve<\/a> President John Williams said it would be \u201creasonable\u201d to expect another Fed interest rate hike by the end of the year.<\/p>\n<\/div>\n

____<\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-81923","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/stateofthenation.info\/index.php?rest_route=\/wp\/v2\/posts\/81923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateofthenation.info\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateofthenation.info\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateofthenation.info\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stateofthenation.info\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=81923"}],"version-history":[{"count":1,"href":"https:\/\/stateofthenation.info\/index.php?rest_route=\/wp\/v2\/posts\/81923\/revisions"}],"predecessor-version":[{"id":81926,"href":"https:\/\/stateofthenation.info\/index.php?rest_route=\/wp\/v2\/posts\/81923\/revisions\/81926"}],"wp:attachment":[{"href":"https:\/\/stateofthenation.info\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=81923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateofthenation.info\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=81923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateofthenation.info\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=81923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

<\/th>\n<\/th>\n<\/th>\n<\/th>\n<\/tr>\n<\/thead>\n
US10YU.S. 10 Year Treasury<\/a><\/td>\n5.23%<\/td>\n+0.049<\/span><\/td>\n<\/tr>\n
US1MU.S. 1 Month Treasury<\/a><\/td>\n3.956%<\/td>\n-0.01<\/span><\/td>\n<\/tr>\n
US1YU.S. 1 Year Treasury<\/a><\/td>\n4.497%<\/td>\n+0.008<\/span><\/td>\n<\/tr>\n
US2YU.S. 2 Year Treasury<\/a><\/td>\n4.922%<\/td>\n+0.058<\/span><\/td>\n<\/tr>\n
US30YU.S. 30 Year Treasury<\/a><\/td>\n5.534%<\/td>\n+0.032<\/span><\/td>\n<\/tr>\n
US3MU.S. 3 Month Treasury<\/a><\/td>\n4.188%<\/td>\n+0.01<\/span><\/td>\n<\/tr>\n
US6MU.S. 6 Month Treasury<\/a><\/td>\n4.38%<\/td>\n+0.018<\/span><\/td>\n<\/tr>\n<\/tbody>\n