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Morning Edition · Saturday, October 10, 2026Published at 1:16 AM EDT · New York
Ten-Year Treasury Yield Ends Week at 5.24% as Bessent Skips the IMF and World Bank Meetings in Bangkok
Gold rose 1.3% and silver 2.2% on Friday as yields eased slightly, though both metals are still down over the past month while the 10-year Treasury yield stays near 5.24% and the 30-year near 5.63%.
US Treasury Secretary Scott Bessent will not attend next week's annual meetings of the International Monetary Fund (IMF) and the World Bank in Bangkok. The Japan Times noted that the decision comes as benchmark Treasury yields have risen to their highest levels in nearly 25 years. Reuters, via Investing.com, reported that he cited domestic engagements. Deputy Treasury Secretary Francis Brooke and Under Secretary for International Affairs Erin Browne will lead the US delegation. The Nation Thailand reported that the agenda centers on the global outlook and artificial intelligence.
The 10-year Treasury yield finished Friday at 5.24% and the 30-year yield at 5.63%, according to ETF Trends and Trading Economics. Globes reported that Wall Street closed higher, European markets also rose, and bond yields fell slightly from their peaks but stayed near them. The newspaper also reported that Teva shares rose sharply after the US Food and Drug Administration (FDA) approved its schizophrenia drug Weltruza.
The administration wants lower yields. David Zervos, a new adviser to Bessent, told CNBC on Thursday that yields are "really, really high" but can come down soon. The bond market has not yet moved toward that view. Long-term rates have risen even though the administration has said it wants cheaper borrowing.
Precious metals rose on Friday's small drop in yields. Gold rose 1.31% to about $4,187 an ounce, and silver rose 2.24% to about $60.50, according to Trading Economics. Over the past month gold is still down about 3% and silver about 4.8%. Yahoo Finance described silver as recovering from two-month lows. Rio Times linked the day's gain in a gold fund directly to easing Treasury yields.
Part of a tracked trend
The Long-End Revolt
Governments will keep reaching for balance-sheet tools to suppress long-term yields, and bond markets will keep repricing duration higher anyway, so each intervention transfers demand into scarce assets instead of lowering borrowing costs.
What this means
The mechanism is the real interest rate. With 10-year Treasuries paying more than 5%, holding gold, which pays no interest, costs more. Over the past month that cost has outweighed the war and inflation premium in the metals. The pressure falls on long-duration assets: mortgages, commercial real estate refinancing, highly valued growth stocks, and emerging-market borrowers who pay a spread over Treasuries. Washington's choice of a domestic schedule over Bangkok tells foreign finance ministers that US policy is being set for domestic needs, including deficit financing and the election. The consensus treats Zervos's comments as an early sign of yield relief. In practice, the Treasury can lower long yields only by shifting issuance toward short-term bills or by asking the Federal Reserve to absorb duration. Both approaches expand short-term, money-like credit. The desk's read is that if yields fall over the coming months, the cause will be balance-sheet measures rather than lower inflation, and gold will recover faster than Treasury prices in that case. The read is wrong if core inflation falls clearly enough to bring yields down without any Treasury or Fed intervention.
What to watch
- Next Treasury refunding guidance on the split between short-term bills and long-term bonds. A shift toward bills would show the Treasury managing the long end through its financing choices.
- Whether finance ministers in Bangkok press the US delegation on the dollar and Treasury yields. Public criticism from large reserve holders would be new pressure on US funding costs.
- Whether gold can hold its Friday gain while yields stay above 5%. Holding it would show buyers paying for protection despite the higher income available from Treasuries.
Observations to monitor, not financial advice.
Synthesized from: The Japan Times · Globes (Hebrew) · The Nation Thailand
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