Lates News

The yield on the 30-year U.S. Treasury bond has risen to its highest level in nearly 20 years, reflecting investors' concerns over the expanding scale of U.S. national debt, the large issuance of long-term bonds, and the persistently high inflation that has exceeded the Federal Reserve's target for the past five years. The yield on the so-called ultra-long U.S. Treasury rose by 3 basis points on Monday, reaching 5.29%, the highest level since 2007. This upward trend brings it closer to the peak of 5.44% set in the early stages of the 2007 global financial crisis. The rise in long-term U.S. Treasury yields is pushing up the financing costs for the U.S. government. Investors are demanding higher yields as compensation to guard against the risks posed by increasing government debt and sustained high inflation, both of which could keep short-term interest rates elevated for an extended period. We have consistently opposed the view that the sell-off in long-term U.S. Treasuries will soon fade, and we still hold that belief, said Anshul Pradan, head of U.S. interest rate strategy at Barclays. For a constructive view on long-term U.S. Treasuries to materialize, some combination of the following factors would need to occur: positive surprises on the fiscal front, a slowdown in bond issuance related to AI, adjustments to the Treasury's bond issuance strategy, and consistently weak economic activity data.