US 10-Year Treasury Yield Hits Highest Level in Two Decades

US 10-year Treasury yields climbed to 5.34 percent on Thursday, October 1, 2026 (9 Mehr 1405), amid a broad sell off in global debt markets, a level unseen since 2002. According to Mehr News Agency and EcoIran, simultaneous increases in oil prices, inflation concerns, and growing financing needs from the US government and technology companies have intensified upward pressure on long term rates.

Traders continue to price in a high probability of further Federal Reserve rate hikes in coming months, though the Fed's own projections and dot plot point to a slower pace. Borrowing costs have also risen in several other major economies at the same time. Rising US yields typically strengthen the dollar and the appeal of dollar denominated assets, a channel that also affects Iran's currency and gold markets.