Treasury yields drop below 4%, bond rally intensifies

U.S. Treasury yields plunged to their lowest in months as investors sought safe havens. The 10-year yield dipped under 4%, reflecting escalating concerns over the health of the banking sector and growing expectations of Fed rate cuts. The move drove tighter spreads in the credit markets and added pressure on financial stocks. Strategists say the yield curve behavior signals investor caution ahead of key inflation data and earnings for big banks.