Overview
- The global bond sell‑off pushed the 30‑year U.S. Treasury yield above about 5.3% and the 10‑year near 4.74–4.75%, with the 30‑year reaching its highest level since 2007 on Tuesday.
- Investors are demanding a larger term premium — the extra return for locking money up long term — because Washington’s large deficits and near‑$40 trillion national debt mean steady, heavy Treasury issuance.
- Geopolitical risk and higher oil prices tied to the U.S.–Iran conflict have amplified inflation worries, prompting broad selling in long‑dated sovereign bonds across the U.S., Europe and Japan.
- Recent Treasury auctions cleared at materially higher yields but showed solid participation, which means markets are repricing borrowing costs rather than staging a buyers’ strike.
- Rising long yields are already tightening financial conditions by lifting mortgage and corporate borrowing costs, increasing refinancing burdens for firms and adding pressure to government budgets ahead of key fiscal and election cycles.