Bond Market Extends Tentative Recovery -- WSJ

By Sam Goldfarb

The bond market continues to show signs of calming down after its punishing September selloff.

Treasury yields, which move inversely to bond prices, generally fell on Tuesday, with yields on longer-term bonds leading the declines.

The yield on the 30-year U.S. Treasury bond, in particular, fell for its third straight session for the first time since early August, according to Tradeweb. It settled Tuesday at 5.562%, down nearly 0.1 percentage point from Wednesday.

Analysts have seen signs in recent days that market quirks blamed for deepening the recent selloff are starting to straighten themselves out, stirring hope that the rise in bond yields will also peter out. Holders of mortgage-backed securities, for example, are facing less pressure to hedge their portfolios by taking steps that lead to selling of Treasurys.

Some investors have also seen a buying opportunity after yields reached their highest levels in 24 years. They argue that the market has overestimated how much the Federal Reserve will raise interest rates in the coming months-a view that was buttressed on Tuesday when New York Fed President John Williams said in an interview with Bloomberg that the economy could evolve in such a way that the Fed wouldn't have to raise rates next year.

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(END) Dow Jones Newswires

October 13, 2026 16:34 ET (20:34 GMT)