US budget deficit comes in at $26.9bn for September
The monthly figure lands as Treasury yields pull back from multi-decade highs reached earlier in the autumn
Published
Chart: US10Y, US 10-year Treasury yield, one-minute prices, three sessions
The US Treasury recorded a budget deficit of $26.9 billion for September, according to the official release.
The number arrives well after the real story in government finances had already moved to the bond market. Yields across the Treasury curve climbed to 2007 highs through September and into early October, driven by concerns over the deficit and the government's borrowing needs. Treasury Secretary Bessent has repeatedly acknowledged those concerns.
That climb has since reversed. The 5-year yield dropped 10 basis points on Wednesday on haven demand, reversing the sharpest leg of the month's rise, days after jumping 15 basis points in a single session alongside soft auctions and weak uptake at bond buybacks. The reversal extended on Thursday, when 5-year and 7-year yields each fell a further 15 basis points.
September's deficit reading does not change that picture. The structural pressure on yields has been priced through weak auctions and buyback shortfalls rather than monthly budget prints, and the more relevant recent move is the reversal in intermediate yields on haven demand rather than any improvement in the fiscal outlook. That reversal has temporarily eased the pressure on equities that higher discount rates had been applying, and this release is unlikely to change that on its own.