10-Year Treasury Yield Falls 17 Basis Points to 4.96%, Biggest Drop Since March 2023

Treasury yields fell sharply on Thursday as investors sought safety. The 10-year yield dropped about 17 basis points to 4.96%, its largest one-day decline since March 2023, while the 2-year fell to 4.65% and the 30-year to 5.29%.

Lower yields can ease pressure on rate-sensitive areas such as real estate investment trusts, including Realty Income, Medical Properties Trust and Agree Realty, as well as banks and brokerages. Weekly jobless claims fell to 194,000, a three-month low.

Futures markets price about a 90% chance the Federal Reserve holds rates at its October 27-28 meeting. Inflation data and the Fed's tone will be the next test for whether yields stay below 5%.