Benchmark 30-year Treasury yields hit 5.24%, the highest since 2007, as markets question Fed resolve on inflation control.
US Treasury yields climbed sharply in Asian trading, with the 10-year up 7 basis points and the 30-year rising 9 basis points to 5.24%. The move marks a fresh cycle high for the 30-year, surpassing levels last seen in 2007 and signaling potential further upside momentum.
The surge follows persistent testing of the 5.20% level since October 2023, when inflation stood at 9%. Despite Fed commentary, markets remain skeptical of the central bank’s commitment to restoring 2% inflation, particularly as economic strength and stable employment persist. Rising yields have pushed benchmark mortgage rates into the 6.75-6.80% range, nearing the 7% threshold that could strain borrowers.
Market reaction reflects growing concerns that the Fed may be falling behind the curve, with the next policy meeting scheduled for September 16. Geopolitical tensions, including conflicts in the Middle East, have further pressured sentiment, reinforcing the upward trajectory in yields.