10-year Treasury yield hits 5.3% after sharpest monthly rise since 2022

Rising Treasury yields are forcing some leveraged and mortgage-bond investors to sell into the weakness, even as government bonds become more competitive with risk assets. The 10-year yield jumped 53 basis points in September to 5.3%, its sharpest monthly rise since September 2022, while the Bloomberg U.S. Aggregate Bond Index fell 2.6%.

The selling pressure is feeding on itself as yields rise and bond holders cut exposure. Asset managers shorted 10-year Treasuries at the second-fastest pace since 2023, and expanded bond purchases from Treasury Secretary Bessent did not stop the decline. The 30-year yield reached 5.64%, its highest level since 2002.