Scott Melker, host of The Wolf Of All Streets podcast, reported on X on Wednesday, October 7, 2026, that long-term U.S. Treasury yields have climbed to levels not seen in over two decades. Melker stated, "The 10-year Treasury yield hit 5.364% and the 30-year hit 5.669% today, both fresh 24-year highs. The move faded after a $39 billion 10-year note auction. The notes priced at 5.3%, the highest yield on a 10-year auction since November 2000. At the same time, demand was strong. The bid-to-cover ratio was 2.77, above the 2.54 six-auction average. Indirect bidders took 80.3%, versus a 72.4% average. Direct bidders took 17.1%. Primary dealers were left with 2.5%, against a 9.4% average and the smallest share since the aftermath of the financial crisis. By afternoon, the 10-year was at 5.284%, up 1.3 basis points from Tuesday. The 30-year was at 5.669%, up 2.8 basis points. The 2-year fell 2.3 basis points to 4.768%. The 2-year/10-year spread widened to 52.2 basis points from 48.1. It hit 53.7 basis points intraday, the steepest since mid-August. Since the end of July, the 10-year yield is up about 60 basis points. Long-term yields just printed levels last seen in 2002, and the auction still cleared."
The rise in long-term Treasury yields occurs as global economic concerns persist. Recent Gokhshtein coverage has highlighted the Euro's slide to a 17-month low due to an energy crisis overriding inflation concerns and the Reserve Bank of India raising its key rate as inflation persists. The Red Sea shipping situation has eased some inflation risk premiums in bonds, yet U.S.-India trade stalls indicate sticky inflation and duration risk for bonds.
Melker's report implies that despite significantly higher yields, demand for U.S. government debt remains robust, particularly from indirect bidders. This suggests continued global appetite for Treasury securities even as borrowing costs rise. Investors will be watching whether this trend of high demand at elevated yields continues, influencing broader market liquidity and corporate borrowing costs.
