Bond Rout Continues

U.S. Treasury yields hit their highest level in more than two decades on Thursday as a global bond sell-off deepened. A September manufacturing survey in the U.S. showed a sharp gain in prices.

The 10-year Treasury yield breached a level last seen in April 2002, before easing more than 4 basis points to 5.251%. The 10-year is a key benchmark for rates on mortgage and auto loans and credit card debt. The yield on the 30-year Treasury bond also hit its highest in 24 years before pulling back to 5.61%.

Yields and prices move inversely. One basis point equals 0.01%.

“Stocks are near records, but with government bond yields also at multidecade highs, there are questions about how long this rally can last. Some investors also expect higher interest rates to undo the decades-long ‘there is no alternative’ to stocks regime,” Hardika Singh, economic strategist at Fundstrat, said in a Thursday note.

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