10-Year U.S. Treasury Yield Reaches 5.347%, Highest Peak Since 2002

Longer-dated U.S. Treasury yields rose to their highest levels in more than two decades on Monday as investors digested new economic data and prepared for the release of the Federal Reserve's September meeting minutes, according to a report by CNBC Business (https://www.cnbc.com/2026/10/05/treasury-yields-bonds-fed-rates.html).

The benchmark 10-year Treasury yield rose roughly 7 basis points to 5.347%, marking its highest mark since April 3, 2002. Concurrently, the 30-year Treasury bond yield climbed more than 7 basis points to 5.702%, reaching levels unseen since late May 2002. Bond yields and prices move in opposite directions, with one basis point equal to 0.01%.

Jay Hatfield, founder and chief executive officer of Infrastructure Capital Advisors, told CNBC that the market is experiencing a momentum selloff, adding that the 10-year yield typically trades 100 basis points over terminal Fed funds and could move higher on that basis.

The market shifts followed the release of service sector data from the Institute for Supply Management. The ISM Purchasing Managers' Index registered at 54.9 for September, broadly in line with expectations and slightly below August growth levels. However, the survey's price index advanced 1.4 points to 74, lifting its 12-month average to the highest level since March 2023.

Investors are now awaiting the Wednesday release of minutes from the Federal Reserve's September policy meeting. While markets have weathered six weeks of bond selling, Friday's lackluster September employment report had briefly lowered yields and tempered expectations of an interest rate increase at the central bank's October meeting.

According to CME Group's FedWatch tool, traders are pricing in a nearly 82% probability that the Federal Reserve will maintain target interest rates at its upcoming meeting.