US 10-Year Treasury Yield Falls Below 5% for the First Time Since September 23 as AI Selloff Lifts Bond Demand

The US 10-year Treasury yield dropped on October 22 to its lowest level in about a month and slipped below 5% for the first time since September 23. Market data cited by BlockBeats shows a fall of nearly 15 basis points on the day. TradingView earlier reported a decline of about 9 basis points to 5.04%.

The move followed a risk-off swing in equities. The Nasdaq fell more than 2% on October 21, its worst day since June, on worries about AI spending and higher oil prices, according to CNBC’s live coverage. Investors rotated into government bonds, which pushed yields down. TradingView adds that Middle East tensions rose after reports that the US and Israel may carry out further strikes on Iran after the midterm elections.

Context matters here. Yields had recently hit multi-year highs on persistent inflation and fiscal supply concerns, so levels remain elevated. The Federal Reserve announces its decision next week. Markets price about an 89% chance of no change and about a 76% chance of a 25-basis-point hike in December, per TradingView.

For crypto, lower long-term rates can ease financing conditions. However, this drop reflects weakening risk assets rather than stronger growth. That makes it a neutral-to-cautious signal for Bitcoin and altcoins, which have recently traded in step with tech stocks.

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Sources:

• CNBC: 10-year Treasury yield tumbles below 5% to lowest level in nearly a month
• TradingView News: US 10-Year Treasury Yield Down to One-Month Low
• KuCoin News (BlockBeats): U.S. 10-Year Treasury Yield Falls Below 5% for the First Time Since September 23