US Treasury Yields Fall on Tuesday
2026-10-20 14:43
By
Joana Taborda
1 min. read
The yield on the US 10-year Treasury note fell nearly 5 basis points to 5.09% on Tuesday, hovering near one-month lows, as oil prices declined on hopes for a diplomatic resolution to the war in Iran, while weaker housing data added to the downward pressure.
Housing starts fell 5.2% in September, while pending home sales dropped to a record low, highlighting the continued impact of elevated mortgage rates on housing demand.
Investors also weighed persistent inflationary pressures ahead of the Fed’s interest rate decision next week.
The Fed is widely expected to leave rates unchanged, while markets anticipate a 25bps hike in December.
Meanwhile, the 2-year Treasury yield, which is particularly sensitive to near-term monetary policy expectations, edged down to 4.76%.
The 30-year Treasury yield, which is more sensitive to longer-term inflation expectations and geopolitical risks, also declined to 5.42%.