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U.S. Bond Yields Hit Highest Level Since 2002

The higher yields, which are pressuring consumer and corporate borrowers and increasingly weighing on certain corners of the stock market, are unlikely to dissipate soon.

U.S. 10-Year Treasury Yield

Eshe Nelson reported from London and Joe Rennison from New York.

Oct. 1, 2026

A global sell-off in the government bond market continued on Thursday after the yield on 10-year U.S. Treasury notes reached its highest level since 2002, driving up borrowing costs for consumers and companies around the world.

The 10-year U.S. Treasury yield, which underpins corporate and consumer interest rates, soared as high as 5.34 percent on Thursday, its highest since 2002, before easing back to around 5.24 percent, ending the day at it highest level since 2007.

The yield on 10-year French bonds rose to 4.92 percent, also its highest since 2002. Benchmark 10-year notes in Italy and Japan also rose on Thursday, while other regions were more mixed. When bond yields rise, the price, or value, of that bond declines.

The latest moves came as oil prices remained elevated, intensifying short-term inflation pressure that is likely to keep central banks around the world from lowering interest rates soon. Brent crude, the international oil benchmark, is trading above $100 a barrel, even as more oil is flowing from the Middle East than at any point since the start of the war with Iran. Brent has risen roughly 40 percent since the start of the conflict in late February.

Stocks, which are typically sensitive to rising interest rates and oil prices, eased lower in early trading before rebounding, with the S&P 500 ending the day 0.2 percent higher on Thursday, which is the start of the fourth quarter.

The S&P 500 wrapped up the third quarter with a small 2 percent gain, as A.I. companies continued to push the broader market higher. But there were also signs in the quarter that the higher yields were putting pressure on some sectors of the stock market.

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By Eshe Nelson and Joe Rennison

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