US Yields Rise Amid Iran Worries, Broader Selloff
The 30-year yield climbed to its highest level since 2007 as investors priced in geopolitical risk and heavy bond supply, analysts said.
- On Tuesday, the U.S. 30-year Treasury yield surged to 5.323%, its highest level since 2007, as anxiety over the US-Iran conflict converged with a global bond selloff.
- The US-Iran 60-day peace deadline expired Monday with Iran ruling out an extension, prompting global capital to reprice sovereign duration across Japan, Germany, and France.
- A $432.3 billion July budget deficit and nearly $1.7 trillion in corporate bond issuance are flooding fixed income markets with duration supply, lifting yields despite soft economic data.
- "I think that's weighing on bonds because we're living in this world where we're going to have supply shock after supply shock," said Will Compernolle, macro strategist at FHN Financial.
- Next month's 30-year auction serves as the critical signal for investors, while the Federal Reserve maintains the federal funds target at 3.50%-3.75% all year amid Middle East tensions.
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The 30-Year Treasury Hits a 19-Year High. Here's What Is Spooking the Bond Market
The 30-year Treasury just hit a level not seen in nearly two decades, and the culprit is not inflation or Fed rate hikes. Four separate forces are converging at once, and bond markets are signaling that none of them are going away.
The Economic Times
US yields rise amid Iran worries, broader selloff
U.S. Treasury yields surged for a third day on Tuesday, with the 30-year yield reaching its highest mark since 2007. The benchmark 10-year yields also increased, getting close to their recent highs. Inflation expectations remained heightened, as shown by breakeven rates. Moreover, an ongoing global bond selloff significantly influenced rising borrowing costs across different maturities.
30-year Treasury yields at highest level since 2007 amid Iran worries, broader selloff
U.S. Treasury yields surged for a third day on Tuesday, with the 30-year yield reaching its highest mark since 2007. The benchmark 10-year yields also increased, getting close to their recent highs. Inflation expectations remained heightened, as shown by breakeven rates. Moreover, an ongoing global bond selloff significantly influenced rising borrowing costs across different maturities.
Fears of long Iran conflict shake markets
Government bond yields rose to multiyear highs and stock markets fell on growing concern that tensions between the US and Iran are unlikely to resolve in the near future. Benchmark oil prices also topped $90 a barrel as investors fretted that efforts to reopen the Strait of Hormuz were making little headway. Worries over inflation because of rising oil prices and threats to key supply-chain chokepoints, as well as huge debt issuance tied to the …
USA, Japan, Europe: The yields of 30-year government bonds are climbing to decades highs in many places. This is also due to the unresolved Iran crisis.
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