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 investor 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 longe

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 investor 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 Treasuries would likely require some combination of fiscal relief, a slowdown in AI-related bond issuance, a revised Treasury issuance strategy, or sustained weakness in economic activity.