US Treasury yields cross 5% as global bond sell-off spreads and investors eye 6% next

From the Newshound archive · first published 23 September 2026 · last updated 24 September 2026.

Ten-year US Treasury yields have broken through the 5% threshold for the first time since 2007, triggering a global bond sell-off that pushed Wall Street stocks lower and sent European shares sliding. Markets are now pricing roughly a 70% chance the Federal Reserve will raise interest rates in October, as oil holding above $100 a barrel adds to inflation fears. Rising yields are piling pressure on public finances on both sides of the Atlantic.

Investors have already grown so accustomed to 5% yields that attention has shifted to whether 6% could be next.

Higher borrowing costs are hitting US stocks hard, with Wall Street ending Wednesday in the red as oil and bond yields climbed together.

The Fed rate-hike threat looms just weeks before US midterm elections, raising the political stakes for President Trump.

The TelegraphUS borrowing costs hit highest since 2007 on fears economy overheating ReutersUS stocks fall as 10-year Treasury yield hits highest since 2007 ReutersCOMMENTARY: Trading Day: US yields cross 5% thresholdReutersAs 5% Treasury yields lose shock value, investors start worrying about 6%ReutersInflation pressures raise prospect of Fed rate hike on eve of elections Irish TimesGlobal bond sell-off spreads as oil holds above $100 Irish TimesEuropean shares fall as oil prices and interest rate expectations climb APPressure from the bond market hits a new level, and US stocks slide on worries about inflation ReutersWall Street ends down as oil prices, Treasury yields rise

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