Global bond selloff rolls on, US 30-year yield at highest since 2004
TLT•The US 30-year Treasury yield touched 5.48%, its highest since 2004, as a global bond selloff continued. The 10-year yield reached 5.20%, and US 30-year mortgage rates hit 7%.
1. US yields climb
US long-dated Treasury yields rose to their highest in more than 20 years as investors weighed high energy costs, resilient economic growth and increased government spending. The 30-year yield touched 5.48% and the 10-year yield reached 5.20%; US 30-year mortgage rates rose to 7%, around their highest in two years.
2. Investors watch inflation
The 10-year yield has risen 0.70 percentage point since the Federal Reserve’s June policy meeting and 1.25 percentage points since early March. Recent business activity data pointing to strong growth and rising inflation pressures has increased the chances of further Fed rate hikes. Investors are eyeing 6% on the 10-year yield as a potential pain threshold.
3. Global borrowing costs rise
Yields have also climbed in other major economies. Germany expects federal borrowing to reach a record €525.5 billion ($598 billion) in 2026, while its 10-year Bund yield briefly topped 3.6% this month. Japan’s 10-year bond yield reached its highest since 1996 on Thursday.
