ING cites structural pressures and lapsed geopolitical truce for sustained upward yield pressure on US Treasuries.
US 30-year Treasury yields surged to 5.321%, their highest level since mid-2007, as foreign demand cooled in June. Data showed a $6.8 billion net inflow on one measure but a $72 billion net liquidation by foreign holders, highlighting volatility in demand metrics.
ING noted real yields are normalizing toward pre-financial-crisis levels, but added issuance from hyperscalers and the lapse of a 60-day Iran truce are fueling further upside pressure. Liquidity conditions in the eurozone are tightening gradually, with banks potentially forced to tap ECB operations by early 2027.
The Treasury sold 30-year bonds at a 5.216% yield earlier, reflecting persistent investor caution amid shifting global demand dynamics.