Treasuries Rally as AI Sell-Off Drags Nasdaq 100 Down 5.5%
New York – October 19, 2026 -- U.S. 10-year Treasury yields fell about 17 basis points last week while the Nasdaq 100 dropped 5.5%, the largest same-week declines in both since the April 2025 tariff turmoil, Bloomberg reported. The move caught investors who had bet heavily on a deeper bond slump after 10-year yields climbed over seven months to their highest levels in more than two decades.
AI stock sell-off restores Treasuries' haven role
The trigger was a sell-off in AI-linked technology shares. Treasuries showed early signs of behaving as a safe haven again, a role they have failed to play for much of the past few years, partly because oil-driven sell-offs can push stocks and bonds lower together. Commodity trading advisers, the trend-following funds that had built bearish Treasury futures positions at what Bloomberg called 'extremely short' levels, exited those bets last week and added fuel to the rally.