Treasury Selloff Flips in Volatile Trading Day -- WSJ

By Sam Goldfarb and Rebecca Feng

The U.S. bond market reversed course Thursday, as investors started separating perceived winners from losers among the debt of developed countries.

The benchmark 10-year Treasury yield retreated sharply after hitting a new 24-year high near 5.34% this morning. Recently, the yield was at 5.22% (Bond yields fall when their prices rise.)

Some traders noted that investors were moving out of government bonds seen as more risky and piling into bonds of the U.S. and Germany.

Traders said the moves were being exacerbated by investors, particularly hedge funds, being forced to unwind popular trades that amounted to bullish bets on France's bonds in particular. In recent trading, yields on French, Italian and Greek bonds were all sharply higher.

Stocks have recovered after falling earlier today and were recently trading slightly higher, led by the Nasdaq composite. The most-actively traded Brent crude futures rose above $101 a barrel.

Earlier today, a reading of manufacturing activity came in slightly lower than expected. But the same report signaled a jump in prices paid by producers. A separate report showed a surprise increase in construction spending in August, reinforcing the theme of a resilient U.S. economy.

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(END) Dow Jones Newswires

October 01, 2026 14:40 ET (18:40 GMT)