US 30-Year Treasury Yield Tops 5.29%, Highest Since 2007

The yield on the 30-year US Treasury rose above 5.29%, reaching its highest level since 2007.

Rising US debt, heavy Treasury issuance and persistent inflation concerns are driving long-term yields higher, according to Walter Bloomberg on August 17. Increased fundraising by artificial intelligence companies and weaker demand for long-dated Treasuries are also adding upward pressure.

Recent employment, inflation and retail sales data have softened, reducing expectations for near-term rate hikes by the Federal Reserve. Even so, selling in long-term Treasuries has continued.

As short-term Treasury yields fall and long-term yields rise, the yield curve is also steepening.