A $25B auction of 30-year bonds cleared at 5% yield amid rising inflation driven by surging energy prices.
The U.S. Treasury auctioned $25B in 30-year bonds at a 5% yield on Wednesday, marking the first time long-term yields reached that level since 2007. The move reflects persistent inflation pressures fueled by rising energy costs across the economy.
The last time 30-year yields hit 5% was during the pre-financial crisis period, with recent prints remaining below 4.5% for most of 2023. Analysts had anticipated a yield near 4.9% ahead of the auction, but demand dynamics pushed it higher.
The auction result underscores growing investor concerns about inflation and the Federal Reserve’s potential need for prolonged restrictive policy.