US 10-year Treasury yields opened October 2026 near multi-decade highs around 5.25-5.29% after touching 5.34% on October 1, driven by resilient economic growth, elevated energy prices, and heavy capital demand for AI infrastructure. Persistent above-target inflation, large fiscal deficits, and expectations for additional Federal Reserve rate hikes through mid-2027 have sustained the sell-off, with the benchmark posting its largest quarterly rise in yields this century through September. Softer August PCE data provided limited relief, while the September jobs report and the October 27-28 FOMC meeting represent key near-term catalysts that could shift rate-path expectations and influence whether yields retrace lower during the month.