US 30-year Treasury yield rises to highest since 2002
The leg higher comes as inflationary angst and hefty corporate debt supply weigh on the market
US 30-year Treasury yield has increased to its highest level since 2002 due to concerns over inflation and substantial corporate debt, according to market reports. The benchmark bond's rate surpassed 5.61 percent on Tuesday (September 29), returning to a territory not seen since the low-rate era following the global financial crisis and the COVID-19 pandemic.
This rise is attributed to inflationary anxieties and a surge in corporate debt, as well as the ongoing sell-off in global debt markets. Michael Cloherty, head of US interest rate strategy at CIBC Capital Markets, noted that the long end of the yield curve appears cheap compared to historical standards, but there has been a delay in significant investment from large players.
The Federal Reserve Bank of New York's president, John Williams, suggested that a single further upward adjustment to the central bank's target rate for the US overnight lending rate could be appropriate by late 2026, potentially held off until the next meeting in October. This statement contrasted with the urgency expressed by other Fed officials to raise rates more aggressively.
The sell-off in US Treasuries has been the most significant since President Donald Trump's April 2025 tariff rollout, driven by increased business activity, concerns about government debt levels, and the initiation of a large bond sale by Paramount Skydance. Analysts suggest that the Treasury market is experiencing a "light buyer's strike," while some investors view this volatility as an opportunity to enter the market.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
