FX.co ★ US 10-Year Treasury Yield Drops to 3-Week Low

The yield on the US 10-year Treasury note fell to about 5.11% on Thursday, a three-week low and a sharp reversal from the previous session, when it briefly climbed to 5.33% following stronger-than-expected inflation data. The pullback in yields came as a deepening selloff in equities—particularly in technology and artificial intelligence stocks—pushed investors into safe-haven government bonds.

Data released on Wednesday showed annual headline inflation accelerating to 3.7% in September, above the consensus forecast of 3.6%, while core inflation rose to 2.6%, slightly higher than expectations of 2.5%. Chicago Fed President Austan Goolsbee called the numbers “discouraging” and cautioned that the rapid buildout of AI-related infrastructure could be contributing to an overheating economy.

Even so, several Federal Reserve policymakers maintained a cautious stance on additional rate hikes. Futures markets currently imply roughly a 73% probability that the Fed will leave interest rates unchanged at its upcoming meeting.