U.S. Treasuries and municipal bonds rallied Thursday while equities ended mixed. Muni yields fell 5 to 16 basis points, with the biggest gains at the short end, and UST yields dropped 12 to 15 basis points, led by the seven-year area. The 10-year UST yield fell below 5% for the first time since late September. Kim Olsan of NewSquare Capital said a flight to quality is outweighing inflation worries, driven by renewed fighting in Iran, unrest in France and weak global IPOs, and she expects some gains may fade as news shifts. In the week ended Wednesday, muni funds drew $1.603 billion of inflows, while high-yield funds saw $756.4 million of outflows, their seventh consecutive weekly outflow.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on bondbuyer.com ↗
Keywords
bondsinterest ratesUSpublic debt
Open a keyword to see other news on the same topic.
Related tickers and likely impact
DXY
▼ Likely negativeRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/22/2026 | 101.62 |
| Change that session | -0.07% |
XAU/USD
▲ Likely positiveRelevance: low
| Market | Gold |
|---|---|
| Close on 10/22/2026 | 4,024.59 |
| Change that session | -2.82% |
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/22/2026 | 763.96 |
| Change that session | -1.18% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- US Records Unprecedented Grim Milestone: A 'Bomb' of Over $1,000 Billion About to Explode?
US net interest costs for the fiscal year ending September reached $1,050 billion, up more than 8% from $970 billion a year earlier and about 3.2% of GDP, surpassing the record set in 1991. The rise reflects debt above $32,000 billion and an average Treasury interest rate of 3.52% at end-September, double the level of five years ago, so maturing debt must be refinanced at higher costs. Interest is now the federal government's third-largest expense, behind only Social Security and Medicare. Experts say it is not yet a crisis, given solid auction demand and nominal GDP growth above bond yields, but warn that rising debt and interest costs could create a snowball effect. The CBO projects debt-to-GDP could exceed 106% by 2030, while TD Securities estimates that a 1-percentage-point rise in yields could add $310 billion to 2027 interest costs.
- Ray Dalio warns US bond bear market has a long way to go as debt supply swamps demand
- France crisis sounds familiar . Is America next ? | <span class= tnt - section - tag no - link >News< / span>
CNN says France is nearing a fiscal crisis because it spent more than it can repay, with bond yields surging and politically unpopular fixes like tax hikes or spending cuts. The IMF reported that the G7's average 10-year government bond yield rose more than 1 percentage point since February to nearly a 20-year high, with France's public debt around 119% of GDP and its deficit at 5.4% of GDP. The United States, with $32 trillion in public debt roughly equal to GDP and interest costs above $1 trillion a year, or 14% of the federal budget, faces similar arithmetic but no imminent crisis. The article credits the dollar's reserve-currency status, Treasuries' safe-haven demand, and a large, diversified economy boosted by an AI investment boom, while noting the risk of contagion across Europe is low.
- Treasury dismisses IMF debt alarm as US yields hold above 5 %
- Trump $2 trillion debt bomb now veering into new crisi : NYT analysis
The U.S. budget deficit rose to $1.99 trillion this fiscal year from $1.78 trillion in 2025, nearing its highest level since the pandemic. Spending on the military, safety-net programs and interest payments far outweighed the Trump administration's cost cuts. Rising Treasury yields pushed mortgage, credit card and auto loan rates to their highest in two decades earlier this month. Carolyn Bourdeaux of Concord Action warned that the country is heading toward a fiscal crisis without real action, while economist Daleep Singh said higher rates make the debt burden harder to sustain. The CBO said interest costs rose by more than $100 billion from 2025, and the deficit has climbed back above 6% of the economy, well short of Treasury Secretary Scott Bessent's 3% goal.
- The World Governments Face A Debt Reckoning - Financial Services
Global public debt reached 111 trillion USD in 2025, up from 49 trillion USD in 2010, and total debt including private borrowing is roughly 365 trillion USD, more than three times annual global GDP. The IMF expects advanced-economy deficits to average 5.2% of GDP in 2026, and October forecasts put US general-government gross debt at 126.8% of GDP this year and China's at 104.4%. Ageing populations add pressure on pensions and healthcare, with the number of people aged 65 and over per 100 adults across the OECD projected to rise from 33 in 2025 to 52 by 2050, while defence spending demands grow. Refinancing at higher rates gradually raises interest bills, and raising taxes or cutting spending remains politically difficult amid competition between nations for investment. For businesses, investors' doubts about public finances can raise borrowing costs through higher bond yields, and tighter budgets may reduce government subsidies.
Related markets
Latest news
- The AI investing story had a rough week. It may be time to take profits while you still can
Market professionals are growing wary of the AI trade after a week of heavy data in tech, as investors question whether returns will arrive fast enough to justify the massive infrastructure build-out. Although the S&P 500 is only a few percent below its record, helped by rotation into non-AI names such as Procter & Gamble and Berkshire Hathaway, many AI-related shares are already in or near a bear market. The Global X Artificial Intelligence & Technology ETF fell 4% this week, 8% in October, and sits 15% below its summer record, while the iShares Semiconductor ETF is down 29% from its recent high. The article says profit-taking or hedging may be worth considering, and notes that options traders are buying more downside protection; Alphabet fell more than 10% after reporting lower core advertising revenue, and Anthropic's filing gave little forward revenue information after sales slowed from Q2 to Q3.
- Wall Street analysts like Amazon's AWS outlook
Amazon posted mixed Q3 results after Thursday's close: earnings per share of $1.89 and revenue of $201.9 billion fell short of Bloomberg analyst consensus ($1.97 and $202.25 billion), while AWS revenue rose 39% year over year to $46.0 billion, beating expectations, and operating income topped the company's own estimates. Amazon shares fell more than 7% in premarket trading on Friday but pared those losses during the session. CEO Andy Jassy said the company expects AWS growth above 40% in 2027 and 2028, and Amazon projected potential AWS revenue of $1 trillion over the next 5 to 10 years. Analysts were largely positive: BofA kept its Buy rating and cut its price target to $317 from $320, TD Cowen kept Buy and lowered its target to $340 from $350, and Evercore ISI reiterated Buy with a $355 price target.
- The big winners of the tech wreck are biopharma stocks
Shares of large drugmakers such as Lilly, Gilead and J&J keep hitting record highs.
- Foreign investors net sell nearly VND 3,000 billion in last week of October, FPT hit hardest
Foreign investors net sold VND 2,692 billion over the five sessions of the last week of October, while the VN-Index fell 32.53 points (-1.83%) to close at 1,741.62. FPT was the most heavily net-sold stock at VND 782 billion, followed by VPL (VND 353 billion) and VIC (VND 287 billion), while GMD, SSI and BID also saw net selling above VND 100 billion. On the other side, MSN led net buying at VND 172.66 billion, followed by VCB (VND 123.25 billion) and TCB (VND 97.73 billion). Trading liquidity in every session of the week stayed below the 20-session average, reflecting a wait-and-see stance from cash flows.
- Gold, Silver In Spotlight After GLD Hits 52-Week Low, SLV Sinks To 11-Month Low – Peter Brandt Sees Signs Of A Potential Bottom
Gold and silver prices fell sharply on Friday as inflation concerns from higher energy prices and expectations of a possible interest-rate hike later this year weighed on precious metals. GLD hit a fresh 52-week low and SLV slumped to its lowest level in more than 11 months: spot gold fell 3% to $3,897.17 per ounce, while spot silver dropped over 6% to $49.08, below $50 for the first time since November 2025. According to the CME FedWatch Tool, the odds of a December rate hike stand at 73%, even though the Federal Reserve held rates steady on Wednesday. Veteran trader Peter Brandt said investors who bought silver above $90-$100 per ounce are now selling, calling it 'how the start of bottoms are formed.' Retail sentiment on Stocktwits stayed bullish for GLD and turned extremely bullish for SLV.
- Apple (AAPL) Fined In South Korea Over Unfair App Store Practices
South Korea's antitrust regulator fined Apple over alleged unfair App Store practices affecting local developers. The ruling requires Apple to revise contract terms with Korean app makers, including allowing external payment links in apps. Authorities also ordered improvements to Apple's app review procedures, focusing on transparency and the treatment of third-party developers. According to the article, the fine is small relative to a business with revenue in the hundreds of billions of dollars, with a potentially larger impact from changes to commissions charged to local developers over time. The key near-term question is whether similar contract and payment changes spread to other regions or remain limited to South Korea.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.