US long-term bond yields rise sharply as investors demand higher premiums amid inflation and supply concerns.
US Treasury yields climbed on Friday, with the 30-year bond yield reaching its highest level since 2007. The surge followed disappointing US Retail Sales data and persistent inflation concerns, driving demand for higher yields amid a flood of long-dated bond sales and rising national debt.
The 10-year Treasury yield rose nearly 4 basis points to 4.728%, while the 30-year yield jumped nearly 6 basis points to 5.315%. The 2-year note yield, sensitive to rate expectations, increased by 1.5 basis points to 4.179%. Recent data showed slowing consumer spending and resumed disinflation, but inflation remains above the Federal Reserve’s target.
Investors are now focused on the upcoming release of the Fed’s August meeting minutes, with markets pricing in a 68% chance of a rate adjustment. The yield curve’s shift reflects broader anxiety over inflation resilience and fiscal sustainability.