30-year Treasury yield hits highest level since 2004 as bond market rout continues — SkimNews
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- 30-year Treasury yield reached 5.456%, its highest level since 2004, climbing 5 basis points on Thursday amid a sustained bond market sell-off
- 10-year Treasury yield rose to 5.162%, hitting its highest point since July 2007, with its largest single-day jump since April 2025 driven by stronger U.S. economic data
- Federal Reserve officials, including Michael Barr and New York Fed President John Williams, signaled further policy tightening could come by year-end to meet inflation targets
- Global bond markets followed the U.S. selloff, with Japan’s 10-year JGB yield reaching its highest since August 1996 and European yields hitting multi-year highs
- Traders now price in a more-than-75% chance of a Fed rate hike at the October meeting, up from roughly 49% a week ago, according to CME Group's FedWatch tool
- Mike Sanders of Madison Investments stated that converging fiscal, economic, geopolitical, and supply-side inflation pressures have placed bond markets in unfamiliar territory beyond deficit concerns
Why it matters: With yields on long-term Treasuries at 20-year highs, borrowers face significantly higher financing costs, while the Fed’s path toward tighter policy increases the risk of overcorrection in an already strained credit environment. The shift reflects a material repricing of risk across global fixed income markets.
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