The 30-year Treasury yield rose 3bp on Monday to 5.29%, its highest level since
2007 and closing in on the 2007 peak of 5.44%. The rise reflects investors
concern over a rapidly expanding US debt stock, heavy long-term issuance and
inflation running above the Fed’s target for the past five years. Higher
long-term yields are lifting US government financing costs as investors demand
greater compensation against rising debt and persistent inflation that could
keep short-term rates elevated for longer. Barclays US rates strategist Anshul
Pradhan said the bank remains sceptical the long-end sell-off will soon abate; a
constructive view on long Treasures would likely require some combination of
fiscal relief, a slowdown in AI-related bond issuance, a revised Treasury
issue strategy, or sustained weakness in economic activity.
