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US Treasury Yields Drop As Investors Seek Safe Havens

The benchmark 10-year Treasury yield dropped 15 basis points to 4.996%, slipping below 5% for the first time since September 23

Photo by Connor Gan / Unsplash

US Treasury yields fell sharply on Thursday as investors moved toward safer assets amid a technology stock sell-off, concerns about artificial intelligence investments and escalating Middle East tensions.

The benchmark 10-year Treasury yield dropped 15 basis points to 4.996%, slipping below 5% for the first time since September 23. The two-year yield declined 14 basis points to 4.69%, while the 30-year yield fell 10 basis points to 5.32%.

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Treasury yields influence borrowing costs for mortgages, vehicle loans and credit cards. Bond prices typically rise when yields fall as investors increase demand for these securities.

Market concerns intensified after Nvidia CEO Jensen Huang told CNBC that demand for neocloud computing services was exceptionally strong, but capital remained scarce.

Meanwhile, oil prices climbed more than 2%, with West Texas Intermediate exceeding $99 per barrel and Brent crude topping $111.

The moves followed a New York Times report that Washington and Israel were considering renewed strikes on Iran after November's midterm elections.

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