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10-Year US Treasury Yield Hits 5.02%, Highest Since 2007

By Markets Desk · 2026-09-15 · 1 min read
A tall, stable stack of cylindrical government treasury bonds rendered in flat vector style.
Illustration: Tradingbird

The 10-year US Treasury yield climbed to 5.02%, marking its highest level since 2007. Fund manager equity exposure dropped to 49% as bond yields outpaced stock returns.

The 10-year US Treasury yield rose to 5.02% on Tuesday. This is the highest reading since 2007. The move eclipsed the peak recorded in 2023. Bond market stress is now the primary concern for global investors.

BofA’s latest fund manager survey shows a sharp reduction in equity risk. The share of managers overweight stocks fell to 49% from 56% last month. Cash levels rose to 3.9%, the largest monthly increase since March. A disorderly bond selloff is the top tail risk identified by respondents.

Yield Pressure Drives Equity Rotation

Persistent inflation data and high crude oil prices drive the yield spike. These factors reinforce expectations for higher Federal Reserve interest rates. Investors find long-duration sovereign bonds more attractive than equities. The marginal dollar now favors fixed income over equity earnings bets.

Risk Appetite Retreats Amid Uncertainty

US midterm election uncertainty adds to the market cloud. Investor enthusiasm for stocks is retrenching. However, managers remain bullish on corporate earnings. The AI investment cycle and economic growth outlook still provide support for equities.

Fixed Income Attracts New Capital

Portfolio managers are shifting capital to bonds. The 5% yield threshold makes sovereign debt competitive. Long-duration assets offer clearer returns than volatile stock picks. This shift signals a fundamental change in asset allocation strategies.

Based on reporting by aol.com, compiled by the Tradingbird desk.

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