The 10-year US Treasury yield reached 5.02% on Tuesday, September 15, 2026, marking its highest level since 2007. This increase of as much as four basis points surpassed a 2023 peak and was driven by a global bond selloff, surging energy prices, mounting debt, and inflation concerns. The latest leg of this move followed an increase in global oil prices, particularly as risks to Middle East supplies grew.
Simultaneously, President Donald Trump publicly dismissed concerns about artificial intelligence as a "hoax." His stance puts him at odds with a growing number of lawmakers and AI executives, including those from Anthropic PBC and OpenAI, who are advocating for slower development and stronger safeguards for cutting-edge AI systems. Trump made these remarks in a series of social media posts, labeling himself the "Hoax Buster" and suggesting that fears of AI taking over were a Chinese-backed distraction, aiming to disrupt U.S. economic growth and wealth generation from data centers.
This division on AI regulation comes as experts like Cohere CEO Aidan Gomez warn that AI models are becoming the "most potent cyber weapon ever created" due due to their ability to find and exploit vulnerabilities at scale. Despite these warnings, China also pushed back on calls to slow AI development, with its foreign ministry spokesperson stating that "fear-mongering, confrontation, competition will just disrupt [the] process of global AI governance," although China did advocate for strengthening AI security risk prevention and control.
The rising 10-year Treasury yield, which briefly touched 5.014% on Monday and hovered near 5% on Tuesday, is significantly influenced by increasing oil prices. West Texas Intermediate crude futures were up 1.34% at $101.39 per barrel, and international benchmark Brent was up 1.02% at $105.68, both contributing to inflation concerns. This has led to funds futures traders pricing in a roughly 92% likelihood of a Federal Reserve interest-rate hike, with a decision expected later in the week.
AI-related stocks saw declines following Trump's comments and the broader market sentiment, with Micron, Intel, Marvell Technology, and Applied Materials dropping over 4% each. Nvidia was down about 3%, and South Korean memory maker SK Hynix's U.S. listing declined 7%. This indicates a market reaction to both the political discourse surrounding AI and the rising interest rate environment.
