Treasuries: US bond yields fall as tech-related stock selloff intensifies

Amazon.com

30/10/2026 15:53

Intel and Amazon weigh on stocks
10-year yield on track for biggest monthly fall since 2023
Nasdaq down more than 2% early
Updates to late US morning
By Caroline Valetkevitch and Harry Robertson
NEW YORK/LONDON, Oct 30 (Reuters) - US Treasuries rose on Friday, putting benchmark 10-year yields on track for their biggest monthly decline since late 2023, as a sharp selloff in technology-related stocks added to concerns about AI spending and pushed investors into the safe-haven asset.
The yield on the benchmark 10-year US Treasury US10YT=RR was last down at 4.945%, set to fall about 35 basis points in October, its biggest monthly drop since December 2023. 
The Nasdaq .IXIC opened at its lowest level in more than two months, after Amazon's AMZN.O aggressive AI spending plan and Intel's INTC.O cash burn warning fueled investor concerns about the rising costs of the AI buildout.
The rally in US Treasuries prices in recent weeks has halted a sharp selloff that had pushed yields to multi-decade highs as investors fretted about rising energy costs and rising government debt.
"The last few weeks have just been an absolute sentiment shift," said Gennadiy Goldberg, head of US rates strategy at TD Securities in New York. "The risks have really started to re-emerge, whereas a few weeks prior to that, everything was viewed as an upside risk to rates." 
"The move lower (in yields) in the last few weeks has been more on expectations that you would get a moderation in growth dynamics, a moderation in AI," among other factors, he said. "To some extent, for rates investors, this is a question of whether the AI jitters persist or whether this is just a bump in the road on the way to rates remaining higher for longer."

AMAZON AND INTEL SHARES BOTH FALL
Amazon's shares were down 2.2% in early trading after the company reported a sharp cash outflow and another increase in spending, while chipmaker Intel was down about 28% after warning that it would burn cash this year. An index of semiconductor firms .SOX was down 6.3%.
Yields also fell on Thursday after Alphabet's GOOGL.O shares fell on disappointing results. At the same time, data showed September consumer spending accelerating, and the US economy growing at its fastest pace in a year.
The yield on the benchmark US 10-year Treasury note US10YT=RR was last down 4.4 bps at 4.945%. The yield on the 30-year bond US30YT=RR was down 1.3 bps at 5.316%.
A closely watched part of the US Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes US2US10=TWEB, seen as an indicator of economic expectations, was at 33.3 bps.
The two-year US2YT=RR US Treasury yield, which typically moves in step with interest rate expectations for the Fed, was down 4.8 bps at 4.608%.
The breakeven rate on five-year US Treasury Inflation-Protected Securities (TIPS) US5YTIP=TWEB was last at 2.483% after closing at 2.469% on October 29.
The 10-year TIPS breakeven rate US10YTIP=TWEB was last at 2.351%, indicating the level at which the market sees average annual inflation for the next decade.

 (Reporting by Caroline Valetkevitch in New York and Harry Robertson in London; Editing by Emelia Sithole-Matarise and Kevin Liffey)
 ((caroline.valetkevitch@thomsonreuters.com))