Overview
- Global long-term government yields surged to multi-decade highs, with the U.S. 30-year Treasury rising to about 5.33% on Tuesday, putting pressure on stock valuations and borrowing costs.
- On Wednesday the U.S. Treasury said it would at least double the size of buyback operations for 10- to 30-year bonds, and the 30-year yield fell to roughly 5.20% while the 10-year eased toward 4.65%.
- Equities recovered modestly after the announcement, but technology and semiconductor shares remain vulnerable because higher long yields raise the cost of financing capital-intensive AI and chip projects.
- Oil prices stayed elevated in the low $90s per barrel as U.S.-Iran talks stalled and Strait of Hormuz risks persisted, keeping inflation expectations and bond selling pressure higher than earlier in the year.
- Investors will watch the Fed's July minutes, upcoming Treasury auctions and Jackson Hole for policy signals that could further change long yields and influence mortgage and corporate borrowing costs.