Business · Markets · 2 days ago
US Treasury Yields Rise as High Energy Costs Fuel Inflation Worries
US Treasury yields rose on Friday as investors worried that high energy costs could keep inflation high.
Treasury yields are the returns investors get from holding US government bonds, and they influence borrowing costs across the economy.
The two-year yield rose to 4.79%, while the 10-year yield reached 5.25%.
Earlier in the week, strong demand at Treasury auctions had helped yields fall.
Investors have also been concerned about inflation linked to the war in Iran and about government deficits.
Higher inflation could lead the Federal Reserve to raise interest rates further; the Fed raised rates for the first time since 2023 last month.
Investors are now looking to Wednesday’s US inflation report for clues, while markets are pricing in a rate increase in December.
US Treasury yields rose at the end of the week as elevated energy costs renewed inflation concerns.
Two-year Treasury yields rose four basis points to 4.79% on Friday, while 10-year yields reached 5.25%.
The declines in Treasury prices followed a relief rally after strong demand at auctions of 10- and 30-year bonds on Thursday.
Investors are watching a US inflation report due Wednesday for clues about the Federal Reserve’s interest-rate path.
Traders priced in a 20% chance of another rate increase in October and a full chance of one in December.
- Who
- US Treasury investors and traders, with yields affected by selling.
- What
- Treasury prices fell and yields rose amid concerns that energy costs could fuel inflation and further Fed rate increases.
- When
- At the end of the week, Friday, October 9, 2026.
- Where
- US Treasury bond markets.
- Why
- Elevated energy costs stoked inflation concerns and supported expectations of further Federal Reserve rate increases.
This story does not have two clearly opposing sides.
The market is digesting a very volatile week
This marketplace is looking for an excuse to sell as opposed to buy
A firm CPI reading will likely lift expectations for Fed policy, which in turn could lift long-term rates
Strong demand at auctions of 10- and 30-year Treasuries helped yields decline.
Two-year yields rose four basis points to 4.79%, while 10-year yields reached 5.25%.
A US inflation report is due to offer investors clues about the Federal Reserve’s path.
- Two-year yield
- 4.79% on Friday, up four basis points
- 10-year yield
- 5.25% on Friday
- December rate move
- A Federal Reserve rate increase was fully priced in
- October rate move
- Traders priced in a 20% chance of an increase
- Brent crude
- Around $104 a barrel at the end of the week
Sources
Related news
Amazon in talks to buy AI startup Decart for about $7 billion
Apple reportedly cuts iPhone 18 Pro component orders by up to 20%
SpaceX spectrum deal deepens Starlink’s push into U.S. mobile service
Starbucks has explored a possible takeover of Chipotle
Netflix reportedly plans to cut 5% of its workforce
Meta bans ByteDance ads across its platforms in seven countries
Los Angeles Fine-Dining Restaurants Expand Non-Alcoholic Pairings
Isaias Shuts In More Than Two-Thirds of Gulf Oil Production
Bond Traders Look to Inflation Data and Fed Chair for Rate Signals
Apple reportedly cuts iPhone 18 Pro component orders by up to 20%
Nvidia in talks over investment in or acquisition of Reflection AI
