Bond Market Has a Cow, Treasury Yields Spike Across the Board, 10-Year Yield Near 5%, 30-Year Yield at 5.37%
The 30-year Treasury auction cleared at its highest yield since 2001 as investors demanded more compensation for inflation and rising federal borrowing.
- Treasury yields surged across the board yesterday, with the 30-year yield jumping to 5.37%, the highest since July 2004, while the 10-year yield spiked 14 basis points to 4.97%.
- Persistent Inflation refuses to retreat, and the fiscal deficit projected at 6% of GDP requires the government to sell $1 trillion in new debt every 3 to 5 months, driving borrowing pressure.
- At the 30-year Treasury bond auction this morning, the government sold $22 billion in bonds at a yield of 5.308%, the highest auction yield since August 2001.
- President Trump promised $5,000 to every American adult "if the Republicans win" the midterm elections, a pledge requiring $1.35 trillion in additional borrowing according to Census Bureau estimates.
- Talk of "fiscal consolidation" by Treasury Secretary Bessent was scuttled weeks ago, while observers argue current long-term yields are returning to normal after 14 years of financial repression.
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18 Articles
Morning Bid: Lenders say show me the money as bond carnage spreads
A look at the day ahead in European and global markets from Stella Qiu Perhaps promising to borrow $1.3 trillion to give to every American who votes for you wasn't such a good idea. It may not have been the direct cause of the bond market's latest rou...
The US federal public debt interest rate has reached a new peak since 2007, after the publication of data that reveal an acceleration of inflation due to high energy prices. Within 30 years, the return on Treasury bonds stood at 5.35%, around 14:40 (continental time), with [...]
US 30-year Treasury yield hits 5.34%, highest since 2007, as oil fuels rate-hike bets
US Treasury yields surged across maturities as a sharp rise in oil prices revived inflation fears and pushed traders to raise bets on a Federal Reserve rate hike next week, sending the 30-year yield to levels last seen in 2007.
The interest rate on the U.S. federal public debt reached a new high on Thursday since 2007 following the release of inflation figures in acceleration due to high energy prices.
The yield on U.S. 30-year Treasuries reached 5.35%, the highest level since 2007, due to rising producer prices and soaring oil prices. With the 10-year yield also approaching 5%, concerns are spreading in the market that the Federal Reserve may shift its stance on interest rate cuts in response to inflationary pressures.
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