Overview
- The 30‑year U.S. Treasury yield climbed to about 5.31% on Monday, the highest level since 2007, as long yields jumped across Japan and the euro zone.
- Investors point to a mix of heavy U.S. Treasury supply, falling foreign holdings and large corporate bond sales from major tech firms as pressure on demand for long‑dated government debt.
- Renewed U.S.‑Iran tensions lifted oil above $90 a barrel, which pushed inflation expectations higher and helped raise the term premium investors demand for long maturities.
- Higher long yields are already feeding through to the real economy by lifting mortgage and corporate borrowing costs and widening borrowing spreads for governments.
- Markets are watching upcoming Treasury auctions, the Fed’s released minutes and the September policy meeting for signals on whether yields will stabilise or extend further toward levels some strategists place in the mid‑5% range.