10-year treasury touches highest level since 2023 as oil prices stay elevated

10-year Treasury touches highest level since 2023 as oil prices stay elevated

Ines Ferré · Senior Business Reporter

Wed, September 2, 2026 at 4:42 PM GMT+3 1 min read

What happened: The 10-year Treasury yield (^TNX) eased to 4.77% after hitting 4.814%, its highest level since November 2023. Meanwhile, the 30-year Treasury (^TYX) yield was at 5.26%.

What's behind the move: Long-dated bond yields worldwide have risen as oil prices jumped close to $95 per barrel. The moves reflect how investors are pricing in rising inflation and continued fiscal spending.

"Investors are looking at government debt levels and ever-rising fiscal deficits as countries seem incapable of taking the difficult decisions needed to reduce spending, or raise taxes, to get their respective houses in order and calm markets," Trade Nation senior market analyst David Morrison said.

Last week, Federal Reserve Chairman Kevin Warsh delivered hawkish comments, signaling policymakers could raise rates to combat inflation. On Tuesday, Fed governor Michael Barr said the Fed should raise rates in September if "inflation appears not to be moderating sufficiently."

Polymarket bettors raised their odds of a September rake hike to 56% following Warsh's comments.

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What else you should know: The move higher in yields also comes as governments compete with corporate giants issuing debt to build out AI infrastructure.

"These companies are increasingly issuing bond offerings as the costs of AI can no longer be covered by free cash flow," Morrison said.

Ines Ferre is a senior business reporter for Yahoo Finance.

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