Treasury Selloff Deepens, Sending 10-Year Yield Above 5.1% -- WSJ

By Alexander Osipovich and Jack Pitcher

U.S. bond yields jumped to their highest levels in nearly two decades, with the dollar also rising and stocks falling.

The 10-year Treasury yield jumped 0.17 percentage point to 5.13%, its highest level since July 2007 and potentially its biggest one-day jump since May. The latest leg up in yields came as oil prices jumped back above $100 and a monthly S&P survey showed rising private-sector business activity and price pressures.

Later in the morning, yields continued their move higher when Fed governor Michael Barr said he expects the central bank will need to raise interest rates further to tamp down inflation. They rose further still after the Treasury announced that it will purchase a maximum of $6 billion of 20-year to 30-year bonds at its buyback operation tomorrow, matching the target from its last buyback of longer-term debt.

Stocks fell, led by the Nasdaq, which is down more than 1%. The dollar is up, measured against a basket of currencies, as the Fed's shift toward a more hawkish stance against inflation ripples through foreign-exchange markets.

In Europe, gasoil futures rose after President Trump said he would back a ban on U.S. diesel exports, a move that could relieve pain at the pump for his voters but intensify an energy crunch across the Atlantic.

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(END) Dow Jones Newswires

September 23, 2026 14:05 ET (18:05 GMT)