10-Year Treasury Yield Sinks to 4-Month Low on Inflation, Geopolitical Risks

FomoAnxiety · 2026-02-27T15:19:22+00:00

The 10-year Treasury yield dropped to 3.975% amidst heightened inflation and geopolitical tensions, particularly in the Middle East, prompting investors to seek safety in government bonds.

FomoAnxiety

2026-02-27 15:19:22

Abstract generation in progress

The 10-year Treasury yield is down by 4.2 bps to 3.975%, its lowest level since late October, on a higher-than-expected inflation print and geopolitical developments in the Middle East.

Claim 50% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Investors rushed to bid up the 10-year note as a safe-haven asset after the U.S. Producer Price Index (PPI) showed a 2.9% jump in January, well above the consensus estimate of 2.6%. The data also sent the stock market lower. As a reminder, the yield on a note moves in the opposite direction of its price.

10-Year Yield Slips on Rising Middle East Tensions

Meanwhile, the U.S. has ordered its non-emergency embassy staff in Israel to evacuate as its nuclear talks with Iran are set to continue next week in Vienna. The U.S. has been steadily building up its military presence in the Middle East to prepare for potential strikes on Iran.

On top of that, Pakistan has declared “open war” against Afghanistan following a series of cross-border attacks overnight. Pakistani Defense Minister Khawaja Mohammad Asif accused the Taliban of turning Afghanistan “into a colony of India.”

Disclaimer & DisclosureReport an Issue

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.