US 30-Year Yield Hits Highest Since 2004 as Bond Selloff Deepens
Yields on the US government’s longest-dated bonds climbed to the highest level in more than two decades, the latest milestone notched in an extended bond selloff driven by inflation and fiscal concerns.
US government bond yields have reached a significant milestone, with the 30-year yield hitting its highest level since 2004. This development is part of an ongoing bond selloff driven by concerns over inflation and fiscal issues.
The increase in US Treasury yields has had a ripple effect, influencing bond markets elsewhere. In Japan, the 10-year government bond yield rose to a 30-year high, reaching 3.055%, and the 30-year yield increased to 4.125%. According to Business Recorder, a weaker yen has contributed to inflation concerns in Japan, as it increases import costs and pushes domestic prices higher.
The surge in US Treasury yields was triggered by a stronger-than-expected purchasing managers' report, which reignited inflation fears, and a poorly received auction of five-year notes. This has led to expectations of a near-term Federal Reserve rate hike, causing the US dollar to rally to its highest level in nearly two months.
Brief written by urgent.news from Bloomberg, Business Recorder — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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