Global bond rout rolls on, pushing US 30-year yield to highest since 2004
TLT•The US 30-year Treasury yield touched 5.444%, its highest since 2004, before edging down to 5.404%. US 30-year mortgage rates reached 7%, around their highest in two years.
1. Yields extend gains
The US 30-year Treasury yield climbed to just over 5.44% on Thursday as a global bond selloff continued, then edged down to 5.404%. Strong growth, high government debt, rising energy costs and inflation concerns have pressured bond markets, while recent business activity data added to expectations of possible Federal Reserve rate hikes.
2. Borrowing costs rise
US 30-year mortgage rates reached 7%, about a percentage point higher than before the Iran war and around their highest in two years. Daiwa Capital's Chris Scicluna said higher yields increase mortgage costs and the federal government's debt interest burden.
3. Global debt pressures
Germany's finance agency expects federal borrowing to reach a record €525.5 billion ($598 billion) in 2026 and rise further the following year. Germany's 10-year Bund yield briefly exceeded 3.5% this month, its highest in 17 years, while Japan's 10-year bond yield reached its highest since 1996 on Thursday.
