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Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Sept. 28, 2026. Brendan McDermid | Reuters U.S. Treasury yields climbed higher on Thursday ahead of a closely watched long-dated bond auction later.
The benchmark 10-year Treasury yield was 4 basis points higher at 5.322%, after reaching its highest level since 2002 on Wednesday before retreating later in the day. The 30-year Treasury bond yield rose over 4 basis points to 5.705%, after trading just below a 24-year high in the previous session. The 2-year Treasury note yield was nearly 3 basis points up to 4.793%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions. Minutes from the Federal Reserve's latest meeting published on Wednesday showed officials expect they will raise interest rates again before the end of the year to head off inflation. Investors expect that the Fed will keep rates on hold at its next meeting on Oct. 28 and pull the trigger on a hike on Dec. 9.
Fed Governor Christopher Waller said on Thursday that more hikes are needed to bring inflation down after around 5-and-a-half years above the central bank's 2% target, but suggested rates did not need to rise immediately. "The hikes do not need to come at consecutive meetings," Waller told a Central Bank of Turkey forum in Istanbul. "But they should be in place in an acceptable period of time." Long-dated auction looms Investors are looking ahead to the third Treasury auction this week, taking place after midday.
On Wednesday, the Treasury sold $39 billion of 10-year notes, with global central banks making up over 80% of the auction, above the auction average of 72.4%. The department sold $58 billion in 3-year notes on Tuesday, and is set to sell $22 billion of 30-year bonds on Thursday. "The 10-year auction has set the tone for the Treasury market – at least for the moment," BMO Capital Markets' Ian Lyngen said in a note late Wednesday.
"While the magnitude of the selloff between the September reopening and today's auction might typically have been a reason to keep bidders on the sidelines, we take solace from the sponsorship even as it was the highest-yielding 10-year auction since November 2000." Lyngen added that Thursday's long-bond auction will be "the next barometer of demand for US debt in an environment of global deficit angst." Investors will also await the release of the weekly initial jobless claims on Thursday and the Michigan Consumer Sentiment Preliminary for October on Friday.
Source: CNBC
