The rally in government debt occurred despite inflation data from CPI and PPI coming in hotter than expected this week. Market participants suggest the slide in rates is being driven by a selloff in tech stocks and jitters surrounding the AI trade, which have outweighed government data. This volatility in the bond market has provided no relief for equities, as the S&P 500 recently fell 1.11%.
Tuesday, October 20, 2026
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US 10 Year Yield’s 28 Bps Drop Drives Biggest TLT Gain Since Nov 2024
US Markets5 days ago
The benchmark US government bond yield fell to 5.08% on Thursday, terms of its lowest close since September 23. The 10 year Treasury yield dropped over 28 bps since Wednesday, moving from 5.34% to its current level, while yields for 5 year and 7 year notes both declined by 15 bps. These movements drove the iShares 20+ Year Treasury Bond ETF (TLT) up almost 2%, marking the fund's largest single day gain since November 2024.
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