Treasuries Rally As Safe Haven Demand Returns, Yields Drop Below 4%

Benzinga

Treasury yields hit multi-month lows as investors fled to safety amid bank stress and delayed data. The 10-year fell under 4%, gold topped $4,000, and traders now expect multiple Fed cuts through mid-2026.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Treasury yields fell to multi-month lows as investors sought safety amid renewed market jitters,

00:08according to Bloomberg. Concerns over regional banks' credit exposure and a government shutdown

00:13delaying key economic data sparked a sharp treasury rally as bank shares saw their steepest

00:19drop since April. Investor flight to safety drove the two-year yield below 3.4% and the 10-year

00:26under 4%. The rally, marking Treasury's second major upswing this month, followed fresh trade

00:33tensions that also lifted gold above $4,000 an ounce. The Fed's next rate cut on October 29th

00:40is fully priced in, with another expected in December and possibly two more by mid-2026.

00:47Morgan Stanley strategists said investors should bid a fond farewell to 10-year yields above 4%,

00:53while traders hedge against further declines ahead of the rescheduled September CPI report

00:58on Friday. For all things money, visit Benzinga.com.

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