Explore the latest developments concerning 10-year Treasury yield.
10-year Treasury yield drops back to 5% this week as investors seek cover from AI worries
Investors ran for cover this week as artificial intelligence fears hit stocks, driving the yield on the 10-year U.S. Treasury note below 5%.
The benchmark yield stayed below 5% on Friday, after falling beneath that level Thursday for the first time in a month, as investors continued to express misgivings over the massive debt being taken on by technology companies to finance their build out of AI networks. Tech stocks sank, bond yields on outstanding tech debt rose and spreads on credit default swaps widened in a host of AI companies.
"The selloff in tech stocks drove the flight-to-quality bid, compounded by continued weakness in the French sovereign market," BMO's credit strategy team said in a note Friday. "Interestingly, the focus on weakness in the equity market … [has] overshadowed the move in the energy market, with Treasuries rallying despite WTI crude oil testing $100/bbl."
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Stocks extend declines, 10-year Treasury holds below 5%: AlphaCheck
Good morning. Stocks declined on Friday, extending the prior session's tech-heavy losses.
Yields on the 10-year Treasury held near 4.97% after their biggest one-day drop since 2023.
Here's a check of the markets in the first few minutes of trading, based on a heat map powered by Yahoo Finance AlphaSpace data.
The Tech (XLK) sector fell slightly after shares of chipmakers Nvidia (NVDA) and AMD (AMD) stabilized. Memory makers Micron (MU) and SK Hynix (SKHY) both rebounded.
Moderna (MRNA) sank another 6%, extending declines from the prior session following the lead data of the company's melanoma vaccine trial.
Brent crude oil futures (BZ=F) held near $110 per barrel, while WTI (CL=F) traded near $101 as traders priced in the possibility of escalating fighting in the Middle East.
For more detailed information, explore updates concerning 10-year Treasury yield.
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