The yield on the US 30-year Treasury bond climbed to 5.29% on Monday, its highest level since 2007, as investors reassessed the outlook for government borrowing and inflation. The 30-year rate later touched 5.316%, while the benchmark 10-year note reached its highest level in roughly three decades in Tokyo trading.
The selloff follows a week of Treasury auctions that drew the highest financing costs for 30-year and 10-year debt since 2001, including a $25 billion 30-year bond sale at a yield of 5.216%. Fiscal pressures are mounting: the Congressional Budget Office reported the 2026 deficit has already reached $1.8 trillion and could approach $2 trillion by year's end.
Economic signals remain mixed. While consumer prices rose 3.4% year-over-year last month, well above the Federal Reserve's 2% target, employers unexpectedly cut jobs in July and retail sales posted their steepest decline in over a year.