Surging US Treasury yields are starting to spook investors
Brian Sozzi · Executive Editor
Tue, September 15, 2026 at 1:56 PM GMT+3 1 min read
Surging US Treasury yields have started to spook stock investors.
Investor enthusiasm for stocks is retrenching as rising bond yields and U.S. midterm election uncertainty cast a dark cloud over the markets, BofA's latest fund manager survey showed on Tuesday.
The percentage of fund managers globally overweight stocks — or in other words, bullish — has fallen to 49% from 56% last month. Conversely, fund manager cash levels rose to 3.9% from 3.5%, the biggest monthly increase since March of this year.
A "disorderly bond selloff" is now the top market tail risk. Investors remain bullish on corporate earnings, the AI investment cycle and economic growth, however.
U.S. Treasury yields have faced upward pressure throughout September, driven by persistent inflation signs and elevated crude oil prices reinforcing expectations of higher interest rates from the Federal Reserve.
The 10-year US Treasury yield reached the highest level in about two decades today.
The yield advanced slightly to 5.02%, eclipsing a peak from 2023 to mark the highest level since 2007.
"When you start getting close to 5% on a ten-year yield, it starts making that next marginal dollar more interesting in long duration sovereigns than it does trying to figure out what next quarter Micron's earnings are going to be," Portfolio Wealth Advisors president and CIO Lee Munson said on Yahoo Finance's Opening Bid.
Brian Sozzi is Yahoo Finance's Executive Editor, host of the 'Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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