US 10-year Treasury yield falls below 5%

The benchmark yield stabilized below the 5% threshold after falling more than 19 basis points during trading on October 22. The move marked one of the sharpest daily declines since March 2023. A sell-off in technology stocks and concerns surrounding artificial intelligence investments encouraged investors to shift toward US government bonds.

Weakening risk appetite across global markets boosted demand for Treasuries, while geopolitical developments in the Middle East and rising oil prices continued to influence inflation expectations. Ahead of next week's Federal Reserve (Fed) interest rate meeting, movements in Treasury yields remain important for the direction of the US dollar and equity markets. Investors will closely monitor the Fed's monetary policy signals and upcoming economic data releases.