# 10-Year Treasury Yield Falls to 5.09% as Core Inflation Rises By Enna Lee Canonical URL: https://www.tokenpost.com/news/investing/34454 Published: 2026-10-18T19:16:38.000Z Updated: 2026-10-18T19:16:38.000Z Section: Investing > The yield slipped from 5.31% on Oct. 5 to 5.09% on Oct. 16. PIMCO Chief Investment Officer Dan Ivascyn said a short-term move to 6% was possible amid leveraged selling. The 10-year U.S. Treasury yield stood at 5.09% on Oct. 16, down from 5.31% on Oct. 5, even as September’s headline and core inflation rates accelerated. A Treasury yield measures the annualized return on a bond. For existing bonds, yields move inversely to market prices: a higher price means a lower yield, and a lower price means a higher yield. In an Oct. 9 interview, Ivascyn said a short-term move to 6% was possible amid negative market conditions and stop-out selling by hedge funds and other leveraged investors. He also said a yield of 5.5% or higher could bring weakness in credit and equity markets. His remarks described a possible market move, not a stated PIMCO target. The comments build on [earlier coverage of a possible 6% Treasury yield](). The Consumer Price Index rose 3.7% over the 12 months through September, up from 3.4% through August. Core CPI, which excludes food and energy, rose to 2.6% from 2.4%. The report was released Wednesday, Oct. 14, at 8:30 a.m. ET (12:30 UTC). The energy index rose 20.4% over the year through September. Gasoline prices were up 34.2% over the year and rose 9.1% during September. Headline inflation includes energy prices, while core CPI excludes them; the two measures therefore capture different parts of the price increase. The September employment report, released Oct. 2, showed payrolls increased by 29,000 and unemployment was 4.2%. Average hourly earnings rose 3.0% over the year. On Sept. 16, the Federal Reserve raised its target range by 0.25 percentage point to 3.75%–4%. Separately, net interest on the public debt was estimated at $1.143 trillion for fiscal 2026, up $115 billion, or 11%, from fiscal 2025. The federal government's 2026 fiscal year began in October 2025 and ended in September 2026. The figures show higher annual inflation alongside lower yield readings on the cited October dates. They do not establish whether higher energy costs have slowed household spending enough to limit Treasury yields. ## Links in this article - [earlier coverage of a possible 6% Treasury yield](https://www.tokenpost.com/news/investing/29330)