If you have been considering an annuity purchase right now may be a good time to lock-in all-time high rates. As of October 13, 2026, Nationwide is offering a 5 year fixed annuity at 6.00% for deposits of $100,000 or more. I don’t recall ever seeing an annuity rate of 6.00% from an A+ rated insurance company in my 20+ years of doing this.

MYGA rates and Treasury yields move together, and the 10-year Treasury yield just touched 5.35 percent on October 7, 2026, its highest level since 2002. It closed at 5.24 percent on October 9. If a CD or annuity matures soon, you are shopping in the highest 10-year yield backdrop in more than two decades.

Why did the 10-year Treasury yield hit a 24-year high?

CNBC reported that the 10-year Treasury yield reached 5.35 percent during trading on October 7, then backed off after a strong auction. These were the main forces behind the move.

  • Inflation and energy: investors were worried about inflation and rising energy prices, and U.S. crude rose 20 percent from the end of July.
  • Size of the move: the 10-year yield climbed 60 basis points over the same stretch.
  • A Fed that is hiking: the Fed raised its target range a quarter point to 3.75 to 4.00 percent on September 16, by a 12 to 0 vote.
  • More hikes expected: the minutes of the September FOMC meeting say most officials see another increase as likely appropriate by year end.

The October 7 auction of $39 billion in 10-year notes drew strong demand. Even so, its 5.3 percent yield was the highest for that auction since 2000, according to CNBC.

Where do Treasury yields stand now?

The U.S. Treasury’s daily par yield curve shows the terms that matter most for annuity pricing.

Term October 1, 2026 October 9, 2026
3-year Treasury 4.91% 4.89%
5-year Treasury 5.01% 5.02%
7-year Treasury 5.12% 5.13%
10-year Treasury 5.24% 5.24%

Those are daily closing par yields. The 5.35 percent figure was an intraday high, which is why it does not appear in the table.

Why do MYGA rates follow Treasury yields and not the Fed?

A multiyear guaranteed annuity (MYGA) pays a fixed rate for a set term, such as 3, 5 or 7 years. The insurer backs that promise mostly by buying bonds that mature over a similar stretch.

The Fed sets an overnight rate, while MYGA pricing tracks the 5-year to 10-year part of the bond market. That is why a Fed hike can already be priced into Treasury yields before the vote. I explain the link in more detail in my post on whether annuity rates are going down.

In my experience, carriers reprice new MYGAs on their own schedules. A move in Treasury yields often shows up in annuity rates a few weeks later, not the same day.

How should you compare a MYGA rate with a Treasury yield?

Check whether the MYGA credits simple or compound interest. Simple interest is paid only on your original premium, so a quoted simple rate overstates the yield compared with a compounding Treasury or CD.

  • Example only: a 5-year MYGA paying 6 percent simple interest grows $100,000 to $130,000.
  • Compound equivalent: that is about 5.39 percent a year compounded, which is the fair number to set beside a 5-year Treasury.
  • Taxes differ too: MYGA interest grows tax deferred until you withdraw it, while Treasury interest is taxed each year.

You can compare current MYGA rates by term and carrier rating. Look for the crediting method on each product before you compare yields.

Should you lock a MYGA rate now or wait?

Nobody can call the top in yields, including the Fed. These steps let you act on today’s rates without betting everything on one date.

  1. Know your maturity date. A CD or MYGA maturing in the next 60 days renews into the highest 10-year yields since 2002.
  2. Use the renewal window. My post on what to do when your annuity surrender period ends covers renewing, exchanging and cashing out.
  3. Consider a ladder. Splitting money across 3, 5 and 7 year terms locks part of today’s rates and frees some money sooner.
  4. Ask about a rate lock. Some carriers hold the rate on a pending application for a set period, so ask for the policy in writing.
  5. Watch the calendar. The Fed’s next decision is October 28, 2026, and the meeting after that ends December 9.

The link between MYGA rates and Treasury yields is why bond market news matters more to annuity buyers than any single Fed vote.

Visit My Annuity Store’s Online Annuity Marketplace to compare today’s top rates and purchase your annuity online.

Frequently Asked Questions

Are annuity rates going up?

New MYGA rates tend to rise when 5-year to 10-year Treasury yields rise, often a few weeks later as carriers reprice.

Does a Fed rate hike raise MYGA rates?

Not directly, because the Fed sets an overnight rate and MYGAs are priced off longer-term bond yields.

What was the 10-year Treasury yield on October 9, 2026?

The U.S. Treasury’s daily par yield curve shows the 10-year at 5.24 percent and the 5-year at 5.02 percent.

Sources