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30-year Treasury bond yield rises to highest level since 2007
The 30-year yield climbed five basis points to 5.31% as investors priced in heavy borrowing, persistent inflation and weaker demand for long bonds.
On Monday, the yield on 30-year Treasuries rose five basis points to 5.31%, reaching the highest level since 2007 and reflecting investor concerns over government spending and persistent inflation.
Last week's Treasury auction of $25 billion in 30-year bonds priced at 5.216%, the highest since 2001, driven by corporate borrowing for AI-related investments and nearly $2 trillion in annual federal deficits.
Nohshad Shah, Citadel Securities' head of EMEA fixed-income sales, said long-term yields reflect the Fed's reluctance to tighten policy. Barclays Plc strategist Anshul Pradhan cautioned against fading the long-end selloff.
Rising Treasury yields are mirrored globally, with Canadian 30-year securities reaching their highest levels since 2010. Domestically, the gap between 2- and 30-year yields widened to 114 basis points, the most since April.
Trump administration officials, who early last year predicted fiscal policies would lower interest rates, now confront rising costs rippling through mortgages and loans as the economy faces an oil-price shock from the war on Iran.