US Treasury Yields Ease; French Bond Yields Hit 5%

Yields on United States (US) government bonds softened again during trading on Wednesday (October 21, 2026), driven by rising demand for safe-haven assets amid concerns regarding the valuations of artificial intelligence (AI) companies.

The 10-year US Treasury yield fell for the second consecutive session to 5.110%, while the 2-year yield hovered around 4.776%. The 30-year Treasury yield also declined, reaching 5.419%—near a one-month low. This shift reflects a growing defensive stance among investors, who are increasingly moving capital away from riskier assets and into US government bonds.

Pressure in the technology stock market has emerged due to mounting skepticism about whether AI companies can generate revenue commensurate with their massive infrastructure investments. Investors are now awaiting earnings reports from Meta and Tesla to gain insight into the outlook for technology spending and corporate growth. Meanwhile, concerns over the US budget deficit and rising government debt issuance continue to limit the extent to which yields can fall in the long term. Separately, the yield on 10-year French government bonds reached 5%, reflecting heightened investor anxiety regarding the country’s fiscal situation.

Market participants are currently looking toward the upcoming earnings reports from Meta and Tesla to assess the sustainability of investments in the AI ​​sector, while also closely monitoring the Federal Reserve’s monetary policy direction ahead of next week’s meeting. The market broadly expects the Fed to hold interest rates steady in the 3.75%–4.00% range, though the possibility of an adjustment in December remains. A decline in US Treasury yields could potentially curb the strengthening of the US dollar while providing support for gold prices. However, high inflation risks and fiscal concerns remain factors that could trigger volatility in the global bond market.(yds)

Source: newsmaker.id