Treasuries Recover From Early Slump to Close Higher on Safety Demand

U.S. Treasury securities reversed an initial sell-off to end higher on May 28, 2026, as investors returned to government debt amid persistent economic jitters. The benchmark 10-year note yield fell 3 basis points to 4.25% after touching an intraday high of 4.32%, with prices recouping all early losses. The early session slump was triggered by a stronger-than-expected durable goods report that briefly dented rate-cut bets. However, buyers stepped in as trading desks reassessed the Federal Reserve’s trajectory and geopolitical uncertainties persisted, sparking a flight to safety. The two-year yield, sensitive to monetary policy, slid 2 basis points to 4.10%, slightly flattening the curve. Volumes were elevated across maturities.