The 30-Year Treasury Bond Yield hit 5.501%, which was a high not reached since June of 2007. The spike came after U.S. economic data showed a stronger than expected economy, raising concerns there would be more Fed rate increases to combat inflationary pressures. High oil prices have also contributed to the spike. The rate is a benchmark for long-term interest rates and long-term borrowing.
30-year Treasury yield hits highest level since 2004– www.cnbc.com
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EXCERPT:
Treasury yields were trading at multidecade highs on Thursday, as investor bets on another rate hike from the Federal Reserve mounted.
The 30-year Treasury bond yield was last about 10 basis points higher, hitting a high of 5.501%, a level not seen since June 2004. The benchmark 10-year Treasury note yield, which is tied to rates on mortgages, surged more than 10 basis points to 5.223%, to levels not reached since June 2007. The 2-year note yield rose more than 4 basis points to 4.941%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
Global bonds also sold off. Japan’s 10-year JGB yield rose its highest since August 1996. U.K. Gilts and German Bunds also moved higher, with yields on various European bonds hitting fresh multi-year highs.
Thursday’s moves build on a U.S. Treasury rout that took place Wednesday. The 10-year Treasury yield had its biggest one-day jump since April 7, 2025 as traders reacted to stronger-than-expected U.S. economic data, hawkish commentary from a Federal Reserve official and high oil prices.
“The combination of fiscal, economic, geopolitical, and supply-side inflation pressures converging has bond markets in less familiar territory. The recent rise in yields can no longer be attributed simply to concerns over the deficit,” said from Mike Sanders, head of fixed income at Madison Investments.