A Wall Street debate is emerging over whether 30-year US Treasury yields can
sustain a move above 5%. The yield briefly exceeded that level this week,
hovering near a two-decade high. The rise reflects inflation fears tied to
oil-price shocks from the US-Iran conflict, alongside resilient growth, large
budget deficits, and heavy bond issuance as debt exceeds 100% of GDP. Despite
political pressure for rate cuts, markets expect tighter policy ahead. Higher
yields would lift borrowing costs across credit cards, mortgages, and business
loans, marking a shift away from the low-rate era since the global financial
crisis. Analysts note 5% as a psychological threshold reviving concerns over
rising interest rates.
