Bonds: Yields on 30-year US bonds rise to 25-year high
Washington has to offer its debtors as much money as it has not since 2001 in order to get them to buy long-term debt securities. Demand remains high, but so do Washington's costs.
Düsseldorf. The prices of long-term US government bonds are coming under increasing pressure. This makes debt financing expensive for the US. At the latest auction of US government bonds with a term of 30 years on Thursday, yields reached a level that Washington last had to pay in 2001. The average yield of the securities auctioned with a volume of $25 billion was just under 5.22 percent.
In trading, the yield rose slightly further to 5.24 percent. This also corresponds to the highest level in 25 years. The US issues bonds on a large scale every quarter. On Wednesday, the government had raised $42 billion at once through bonds with a term of ten years. At this auction, the yield was a good 4.68 percent, the highest level since the 2007 financial crisis.
In October 2023, yields were still slightly higher in some cases, peaking at around five percent. However, there was no bond auction scheduled at that time.
Translated by urgent.news. Machine-written — may contain errors; check the original before relying on it.
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- Bonds: Investors demand record yields for 30-year US bonds handelsblatt.com
