Stories
US 30-Year Yield Soars to 2004 High Amid Deepening Bond Selloff
M
Moneycontrol•24-09-2026, 15:28
US 30-Year Yield Soars to 2004 High Amid Deepening Bond Selloff
- •Yields on US government's longest-dated bonds reached their highest level in over two decades, driven by inflation and fiscal concerns.
- •The rate on 30-year Treasuries climbed to 5.44% on Thursday, a level not seen since 2004, following a jump in Brent crude oil prices.
- •Investors are demanding higher compensation for locking up money for 30 years due to economic growth, elevated energy prices, inflation, and increased government borrowing.
- •The rising 30-year yield undermines the Treasury Department's efforts to reduce long-term borrowing costs.
- •Treasury Secretary Scott Bessent's expanded bond buyback program in mid-August has had little sustained impact on the market.
Key Questions Answered
The 30-year Treasury yield rose to 5.44% after Brent crude oil prices jumped, exacerbating an extended bond selloff driven by inflation, economic growth, elevated energy prices, and heavy government borrowing.
Treasury Secretary Scott Bessent expanded the government's bond buyback program in mid-August to ease pressure on long-dated bonds, though it had little sustained impact on the market.
Investors are demanding higher yields due to economic growth, elevated energy prices, inflation, and heavier government borrowing, which make them want more compensation for locking up money for decades.
