10-year Treasury yield falls to 4.899% as AI shares sell off

US Treasury yields fell to multi-week lows on October 15, 2026, as a sharp sell-off in artificial intelligence and technology shares pushed investors into government debt, Yahoo Finance reported, citing Investing.com.

The benchmark 10-year yield slipped to 4.899%, near a three-week low, after trading close to 2002 highs above 5.30% in recent weeks. The two-year yield fell to 4.753% and the 30-year yield declined to 5.419%, its lowest in nearly three weeks.

The move reversed a months-long sell-off driven by heavy corporate bond issuance from AI hyperscalers and semiconductor companies raising money for capital-intensive artificial intelligence infrastructure. That supply widened corporate spreads and lifted sovereign yields. Investors have begun questioning whether the leverage and large capital spending commitments will pay off while borrowing costs remain high, and the cost of insuring high-grade technology debt against default rose sharply.

Equities fell alongside credit. The Nasdaq Composite dropped nearly 1.9%, and South Korea's KOSPI fell 8% overnight, triggering a circuit breaker.

Traders also reassessed the Federal Reserve's path after the September Consumer Price Index showed headline inflation at 3.7% year over year and core prices up 0.3% from the prior month. Money markets continue to assign a high probability that the Federal Open Market Committee holds rates steady at its October 27-28 meeting. UBS expects a third Fed rate increase following the September inflation reading.

This story was first reported by Yahoo Finance.