Written and reviewed by Kevin Nerway · Last verified 6 October 2026
Key Takeaways
- The US 10-year Treasury yield dropped 0.13 percentage points from Wednesday's multi-decade high during Friday morning trading before completely reversing all gains by Friday afternoon.
- The iShares 20+ Year Treasury Bond ETF hit a record low of $77.48 on Friday, marking the fifth consecutive week of rising Treasury yields.
- US September unemployment ticked up to 4.2% from 4.1% in August, showing mild cooling but failing to trigger a sustained rally in safe-haven Treasuries.
- Bond yields require deeper labor weakness, reduced US debt issuance, or capital rotation out of troubled European debt like France (where debt-to-GDP is heading toward 120%) to build lasting downside momentum.
Friday Treasury Reversal: 10-Year Yields Snap Back
On October 6, 2026, fixed-income markets delivered a stark reminder of who holds control in macro assets. During Friday morning trading, the benchmark US 10-year Treasury yield dropped 0.13 percentage points from its multi-decade high set on Wednesday. That initial relief rally in bond prices was sparked by a rapid sequence of triggers: escalating fiscal turmoil in France, reports surrounding the Iran conflict on Thursday, and a softer September US employment print released Friday morning. However, by Friday afternoon, algorithmic buying faded, seller exhaustion gave way to renewed dumping, and Treasuries ended the session under severe pressure.
This sharp reversal dragged the iShares 20+ Year Treasury Bond ETF down to close at a record low of $77.4