As of August 31, the yield on 30-year US Treasury bonds had closed above 5% for 55 trading days, exceeding the 50 days recorded in 2007 and marking the highest number since 2006; the total number of days above 50% in 2006 was 91. The US Treasury's daily yield curve showed that the 30-year yield closed at 5.25% on August 31.
This high level of long-term debt cannot be solely attributed to expectations of a Federal Reserve interest rate hike. Oil prices returning above $90 have increased concerns about long-term inflation, fiscal deficits and debt supply continue to rise, AI companies are competing with US Treasuries for long-term funding through concentrated bond issuance, and weakening overseas official buying has forced the market to rely on price-sensitive private investors.
