30-year Treasury yield tops 5.1%, highest in nearly a year
Long-term borrowing costs climbed as new inflation reports and a 5.046% 30-year auction pushed investors to price in a less certain Fed path.
- The Treasury Department sold $25 billion in 30-year government bonds on Wednesday at a yield of 5.046%, marking the first time since 2007 that the debt issued a yield above 5%.
- Longer-Term Treasury yields spiked late this week as inflation data intensified, with the Producer Price Index soaring 6.0% year-over-year and CPI rising 3.8% driven by services inflation.
- The federal government sold $691 billion in securities this week as yields surged across the maturity spectrum, with the 10-year Treasury note yield jumping more than 11 basis points.
- New Federal Reserve Chair Kevin Warsh faces an increasingly complicated inflation picture as Peter Boockvar, chief investment officer of One Point BFG Wealth Partners, noted "Long end rates are now in control of monetary policy."
- Markets now show a 55% chance of a Federal Reserve rate hike by April 2027, while observers warn that ballooning federal debt remains on an "unsustainable path" as inflation outpaces T-bill yields.
16 Articles
16 Articles
US Sells 30-Year Bonds at 5 Percent Yield for First Time Since 2007
The U.S. federal government has sold 30-year debt at auction at a yield above 5 percent for the first time since 2007. The Treasury Department sold $25 billion of new 30-year bonds on May 13, with the auction yield reaching 5.046 percent. Treasury bond yields represent the return investors receive for lending to the U.S. government over different periods. They move in the opposite direction to prices, meaning higher yields usually reflect fallin…
Bond Yields Surge As Inflation Pressures Mount
Treasury yields surged Friday as investors reacted to stubborn inflation data and the arrival of new Federal Reserve Chair Kevin Warsh. The 30-year Treasury yield climbed above 5.1%, its highest level in nearly a year, while the benchmark 10-year yield rose to 4.55%. Recent economic reports showed inflation pressures continuing to build. Consumer inflation reached 3.8%, according to government data released this week, while wholesale prices rose…
US Treasury Sells $25 Billion in 30-Year Bonds at 5.046% Yield
The US Treasury Department sold $25 billion of 30-year bonds at a yield of 5.046%, slightly above the 5% coupon rate. The auction attracted strong interest, with a bid-to-cover ratio of 2.30, reflecting robust demand, particularly from foreign bidders, as part of the government's borrowing program.
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