While AI stocks shook, money moved into US government bonds.
In the week AI and chip stocks sold off, long-term US Treasury yields fell and Treasury prices rose, while riskier company bonds slipped. Here is what the bond market did, with the numbers.
1. Yields fell
The 30-year Treasury yield went from 5.60% on 12 October to 5.43% on 15 October, and the 10-year from 5.24% to 5.09%. Reuters reported the 10-year at a three-week low during the 15 October session. Lower yields mean higher bond prices. [1] [2]
2. Prices rose
A fund holding Treasuries with 20 or more years to maturity closed at $78.05 on 12 October, $78.37 on the 13th and $78.89 on the 14th, and traded at about $80.00 at 3:55 p.m. ET on the 15th (intraday data; the official close was not yet published). [1]
3. Riskier bonds
A fund of high-yield corporate bonds went from $77.29 on 12 October to $76.81 on the 14th, while Treasuries rose: a flight to quality. On the 15th it recovered to about $77.10 (intraday). [1]
4. The test
One week is not a new regime, and on 15 October riskier bonds bounced too. What would change the picture: whether yields keep falling as stocks steady, and the next US inflation and rate signals.
Sources
- Treasury yields (30-year, 10-year) and prices of a long-term Treasury fund and a high-yield corporate bond fund, via Yahoo Finance, 7–15 Oct 2026. finance.yahoo.com
- Reuters via The Detroit News, “Nasdaq slides to near one-month low as AI rout deepens,” 15 Oct 2026. detroitnews.com
Image credits
- Cover and carousel slide 1: illustration made for YosQuant.