The US 10-year Treasury yield has surged above 5.1%, touching 5.15% on September 24, 2026, its highest level since the Great Financial Crisis. The move marked the sharpest one-day advance since April 2025 and was driven by hotter-than-expected PMI data, which revived fears that the Federal Reserve will continue tightening monetary policy.
The Federal Reserve has already raised its benchmark interest rate by 25 basis points this month—the first increase since 2023—and another hike is projected before the end of the year. With the risk-free rate pushing higher, the opportunity cost of holding non-yielding assets increases, creating a more challenging backdrop for digital asset markets.
The NYSE separately noted that geopolitical developments are contributing to elevated yields and market uncertainty. The exchange also pointed to discussions around tokenized stocks, a signal that traditional financial infrastructure is increasingly looking at blockchain-based representations of equity as the rate environment resets.
Meanwhile, income-focused equities are being highlighted as alternatives to Treasuries: Verizon Communications trades at about 9.5 times forward earnings with a 6.08% dividend yield; Energy Transfer offers a 6.64% yield with distributable cash flow coverage of 2.2 times; and AGNC Investment pays about 14.5% monthly. These yields may keep capital rotating toward income assets, reinforcing headwinds for speculative crypto positioning in the short term.
