Treasury yields post biggest drop since 2023 banking crisis

· Finance · United States

Treasury yields fell sharply on Thursday, with the 10-year note's yield tumbling below 5% to its lowest level in nearly a month and logging its biggest daily drop since the collapse of Silicon Valley Bank in 2023. Investors moved into bonds as US technology giants sold off and Middle East hostilities intensified, pushing oil prices higher. Stock indices split sharply, with the AI trade under pressure and CNN's "Fear & Greed" index signaling fear. PGIM's Tipp described the move as a "take-back trade" rather than an all-out fear of recession. Asian equities were set to extend Wall Street's losses as the tech rout drove investors toward the safety of government debt.

Why it matters：A sudden bond rally alongside an equity selloff signals investors are repricing AI-linked risk and geopolitical exposure at once, a combination that could tighten financial conditions faster than central banks intend.

Key points

  • 10-year yield fell below 5% to its lowest in nearly a month
  • Biggest daily drop since the 2023 collapse of Silicon Valley Bank
  • Asian stocks were set to slide, tracking Wall Street's tech rout

Sources (original reporting)

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