US Treasury yields retreated on Thursday after the 10-year yield briefly climbed to its highest level since 2002, while Wall Street stocks edged higher as investors returned to the bond market.
The benchmark 10-year Treasury yield fell 5.65 basis points to 5.237% after reaching 5.34% earlier in the session, while the 30-year yield declined 3.33 basis points to 5.6057% after also hitting a fresh 2002 high.
The two-year Treasury yield, which is more sensitive to Federal Reserve rate expectations, fell 10.39 basis points to 4.783%, marking its biggest single-session decline since August 2025.
The reversal followed a sharp bond selloff that had pushed global yields higher amid rising energy costs, persistent inflation concerns and expectations for stronger economic growth from artificial intelligence and data centre investment.
The US Federal Reserve raised interest rates last month for the first time since 2023. Minneapolis Fed President Neel Kashkari said further rate increases would likely be needed to restrain the economy going into 2027, although he was uncertain whether the next move should come later this month.
Investors are also awaiting Friday’s US monthly jobs report for further clues on the Fed’s rate path.
Wall Street stocks ended slightly higher, with the Dow Jones Industrial Average rising 0.04% to 50,926.56. The S&P 500 gained 0.19% to 7,666.45 while the Nasdaq Composite added 0.04% to 26,871.60.
Micron Technology rose 3% after providing a stronger-than-expected revenue forecast and reporting US$32 billion in customer commitments under its supply agreements.
European markets remained under pressure, with the STOXX 600 falling 1.3%. The euro also dropped 0.77% to US$1.1242, its lowest level in 17 months.
Oil prices meanwhile jumped as concerns over Middle Eastern supply disruptions intensified. Brent crude rose 4.37% to US$102.31 a barrel while US West Texas Intermediate gained 2.71% to US$92.87.
Gold rose 0.52% to US$4,177.63 an ounce.
