10-year Treasury yield rises to 3.94%, back to Friday’s levels

Treasury yields continued their recovery Wednesday as global markets reverse course from a dramatic equity sell-off to start the week.

The benchmark 10-year Treasury yield was more than 6 basis points higher at 3.95% at 11:20 a.m. ET. The yield on the 2-year note also climbed nearly 5 basis points to 4.028%.

Yields and prices move in opposite directions, and one basis point is equivalent to 0.01%

The yield on the 10-year Treasury bounced back to the level it was at prior to the weak jobs report on Friday that spiked investors’ concerns about a U.S. economic downturn. Combined with the knock-on impact of a hawkish pivot by the Bank of Japan, safe haven assets including Treasurys were bolstered, sending the 10-year yield to its lowest level since June 2023.

Stocks have since regained some positive momentum, with Asia-Pacific and European markets trading higher Wednesday, along with U.S. stocks. And yields, too, have rebounded with investors betting the growth scare sparked by the jobs report was overblown.

To be sure, investors need to remain vigilant, AmeriVet Securities’ Gregory Faranello said.

“We are viewing this as a de-risking period, but you always need to be careful. These positions build over time and we have more room to go. So, we expect things to be volatile going forward,” Faranello, the firm’s head of U.S. rates, said in a note Tuesday.