Market Flux Event
Wells Fargo Raises 10-Year Treasury Forecast to 5.25%-5.75% as Yields Hit Multidecade Highs
Read this in the Market Flux appWells Fargo Investment Institute sharply raised its forecast for the 10-year US Treasury yield, projecting it will reach 5.25%-5.75% by the end of 2027, up from a prior forecast of 4.50%-5.00%, as bond markets extend a punishing selloff to multiyear highs.
The 30-year Treasury yield climbed to 5.58% on September 29, within one basis point of its highest level since 2002, marking a sixth consecutive session of gains. The 10-year yield reached 5.24%, its highest since 2007, while the 2-year note stood at 4.81% as of September 25. Treasuries are down 2.6% this year as a result of the sustained selloff.
A combination of forces is driving the move: elevated oil prices, persistent inflation concerns, heavy government debt issuance, and broader fiscal worries have together fueled a global bond market rout. The scale of the repricing prompted Wells Fargo to widen and lift its yield target band, reflecting expectations that these pressures will keep rates elevated well into 2027.
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Sources
- FirstSquawkWELLS FARGO INVESTMENT INSTITUTE FORECASTS 10-YEAR US TREASURY YIELD AT 5.25%-5.75% BY 2027-END VS PRIOR FORECAST OF 4.50%-5.00%
- etftrends.comTreasury Yields Snapshot: September 25, 2026
- CnbcTreasury yields waver near multiyear highs
- ReutersForget stocks. The bond market may be the bigger story. Why did the 10-year Treasury yield hit 5% — and what does it mean for mortgages, markets and the economy? Find out on the Econ World podcast
- DeItaoneU.S. 30-YEAR YIELD NEARS HIGHEST SINCE 2002 The U.S. 30-year Treasury yield climbed to 5.58%, within 1 basis point of its highest level since 2002, extending its rise for a sixth straight session. The 10-year yield reached 5.24%, its highest since 2007. High oil prices, inflation concerns, heavy debt issuance and fiscal worries are fueling the global bond selloff, with Treasuries down 2.6% this year.
- Seeking AlphaU.S. 30-year Treasury yield tags 5.60%, its highest reading since 2002
- KobeissiLetterBREAKING: The US 30Y Note Yield rises above 5.60% for the first time since June 2002. That’s another +36 basis points this month alone. 8% mortgages will arrive next week.
- JesseCohenInv🚨🇺🇸 U.S. 30-YEAR TREASURY YIELD RISES ABOVE 5.60%, HIGHEST SINCE 2002