10-Year Treasury Yield Plunges 19.3 bps as AI Selloff Sparks Flight to Safety

U.S. Treasuries rallied as the 10-year Treasury yield fell 19.3 basis points to 4.952%, dropping below 5% for the first time in a month. Dow Jones Market Data said it was the largest one-day move in the 10-year yield since March 10, 2023. The policy-sensitive two-year Treasury yield fell 18.8 basis points to 4.635%, its largest daily decline since August 1, 2025. The move came as an AI-linked technology selloff, Middle East escalation and worsening French fiscal and political risks increased demand for U.S. government bonds. Options activity included a roughly $7 million position involving about 65,000 contracts targeting a 10-year yield near 4.6% within one month. A market gauge also showed investors paying a premium for long-dated Treasury calls over puts for the first time in seven months. CME open-interest data released Wednesday showed a large increase in long-Treasury futures exposure, indicating new short positions had been established. The Treasury rally could put pressure on those positions if short covering develops. FactSet data showed SanDisk shares were still up about 430% in 2026 and Micron Technology shares up 200%, despite Thursday's equity pullback.