The Dow Jones Industrial Average fell 347 points to 51,481 on Monday, Sept. 28, as the yield on the 10-year Treasury note rose to 5.24%, its highest since 2007. The Treasury Department’s daily yield curve shows the 10-year closing the day at 5.24%, up from 5.17% on Friday. For retirees and savers, the move sets what new Treasury purchases can lock in and pressures the value of bonds bought at lower rates.
The Dow lost 0.67% while the S&P 500 and Nasdaq fell harder
The Dow closed at 51,481.51, down 347.11 points or 0.67%, according to Yahoo Finance’s market recap for Monday. The S&P 500 dropped 59.72 points, or 0.77%, to 7,683.69, and the Nasdaq Composite lost 248.34 points, or 0.92%, to 26,820.38. The recap tied the decline to rising Treasury yields.
A market wrap published by TV News Check carried the same closing figures and added the day’s other pressure points: Brent crude settled at $97.83, up 0.4%, American Airlines fell 2.5% and United Airlines 2.2%, and MongoDB dropped 18.5% after its chief executive announced he was stepping down.
Treasury’s own table puts the 10-year at 5.24%
The Treasury Department’s daily par yield curve lists Monday’s rates at 4.92% for the 2-year, 5.24% for the 10-year, 5.60% for the 20-year and 5.56% for the 30-year. On Friday, Sept. 25, the same table showed 4.81%, 5.17%, 5.54% and 5.49%. The 10-year rate of 5.24% was the highest of any day in September 2026, and every maturity listed rose over the weekend.
A second close report, from BBN Times, gave the same Dow figures and named the drags on the blue-chip average: Boeing fell about 6.9%, and November West Texas Intermediate crude settled near $93 a barrel after President Trump rejected an Iranian proposal on the Strait of Hormuz. Nvidia rose about 1.7% on the day. The report quoted Northwestern Mutual’s chief investment officer as saying bonds offer more attractive entry points than at any time in nearly 20 years.
Market reports quote the 10-year slightly differently because they sample it at different times. Yahoo Finance’s bond report put it at 5.25% during the session, while the TV News Check wrap had 5.23% at the close after a brief touch of 5.27%. The Treasury table is the end-of-day benchmark, and its 5.24% is the figure used here.
Why 2007 is the reference point
Yahoo Finance’s report on the bond selloff called the move the 10-year’s highest level since 2007, when yields rose in the run-up to the Great Financial Crisis, and put the 30-year at 5.57%, a level not touched since 2004. The TV News Check wrap quoted the line “It’s back to where it was in 2007.” The Treasury table itself covers only the current month, so the since-2007 comparison rests on those market reports rather than on the Treasury page.
The reports list several causes: expectations of more Federal Reserve rate increases, an Iran war that has driven energy prices higher, heavy government borrowing and a surge in AI investment. Macquarie strategists Thierry Wizman and Gareth Berry said yields are high partly because the economy is strong and bond issuance is high. Fed Chair Kevin Warsh was quoted by Yahoo Finance as saying that data broadly show the economy has strengthened and that inflation is the problem.
The Fed has already raised rates once this month
The Federal Reserve’s open market operations page lists a 25 basis point increase at the Sept. 17 meeting, leaving the federal funds target range at 3.75% to 4.00%. Yahoo Finance reported that a majority of voting policymakers expected at least another quarter-point increase, and that four projected 50 basis points of tightening in 2026. A PCE price report and the September jobs report were due later in the week.
What a fixed-rate note offers a buyer
TreasuryDirect describes Treasury notes as securities that pay a fixed rate of interest every six months until maturity, with terms of 2, 3, 5, 7 or 10 years. They are sold at auction, with a minimum purchase of $100, and the rate is fixed at auction and does not change over the life of the note. Interest is subject to federal tax but not to state or local taxes. A note bought after yields rise carries the higher rate, while notes and bond funds bought earlier are worth less on the market.
Yields against the cost-of-living adjustment
The Social Security Administration’s COLA page lists the latest adjustment as 2.8% for Social Security benefits and SSI payments, effective December 2025. A 10-year Treasury at 5.24% sits 2.44 percentage points above that adjustment. The adjustment follows consumer prices, while the yield reflects what investors demand to lend to the government for a decade, so the two measure different things, but the gap frames how much a new fixed-rate note pays relative to the year’s benefit increase.
Reading a year’s retirement income against tax and Medicare thresholds
Retirees who draw income from several accounts often find that the source of a withdrawal changes how much of the year’s income is taxed, and no agency notice works that order out.
The Retirement Tax & Withdrawal Planner pairs a provisional income calculator with an IRMAA tier calculator for testing a year’s withdrawals against those thresholds.
See how a year’s income is tested in The Retirement Tax & Withdrawal Planner.
This article was produced with AI assistance and checked against the primary sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
