INDYFINANCE
2026-10-01 UTC
 
MARKET REPORT

Treasuries Post Worst Quarterly Loss Since 1994

Rising yields have inflicted the bond market's steepest quarterly drawdown in more than three decades, even as rates dipped ahead of Friday's jobs report.

Rates & BondsUnited States
Executive takeaway

U.S. Treasuries just suffered their worst quarterly performance since 1994, a stretch that has reshaped portfolio positioning heading into October.

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Treasury Yields Climbed Steadily Through the Quarter. The 10-year Treasury yield's path over the past year shows the persistent upward pressure that drove bond prices to their worst quarterly performance since 1994.

Treasury Yields Climbed Steadily Through the Quarter

The 10-year Treasury yield's path over the past year shows the persistent upward pressure that drove bond prices to their worst quarterly performance since 1994.

Live Treasury yield data; quarterly loss figure from Seeking Alpha's 'Treasuries' Worst Quarter Since '94'.

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<figure><a href="https://www.indy.finance/news/treasuries-post-worst-quarterly-loss-since-1994"><img src="https://www.indy.finance/news/treasuries-post-worst-quarterly-loss-since-1994/graphic.svg" alt="Treasury Yields Climbed Steadily Through the Quarter" width="1200" height="675"></a><figcaption>Treasury Yields Climbed Steadily Through the Quarter — <a href="https://www.indy.finance/news/treasuries-post-worst-quarterly-loss-since-1994">Indy Finance</a></figcaption></figure>
U.S. government bonds closed out their worst quarter since 1994, according to Seeking Alpha, as persistent rate pressure weighed on fixed-income returns through the third quarter. The selloff has been broad enough to rank among the most severe quarterly routs in three decades of Treasury trading. The damage matters because Treasuries are the benchmark for borrowing costs across the economy, from mortgages to corporate debt. A quarter this bad tends to ripple into equity valuations too, since higher yields make future corporate earnings worth less today. There was a partial reprieve heading into October 1: interest rates dipped overnight ahead of Friday's closely watched U.S. employment report, according to CoinDesk's market updates. Whether that dip marks a turning point or just a pause before the jobs data remains unresolved.
What would change this view

If Friday's U.S. employment report triggers a sustained rally that pulls the 10-year yield meaningfully lower through October, the worst-quarter framing would need revisiting.

Wire sources cited

Produced automatically by the INDY NEWS Desk from the public wire sources cited above, and checked against them before publication. Market commentary, not investment advice.