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US Long-Bond Yields Hit 24-Year High Amid Resilient Spending and Inflation Fears
M
Moneycontrol•30-09-2026, 21:49
US Long-Bond Yields Hit 24-Year High Amid Resilient Spending and Inflation Fears
- •Long-dated Treasury yields surged to fresh multi-decade highs, with 30-year Treasuries reaching 5.63%, the highest since 2002, driven by robust US consumer spending and heavy corporate supply.
- •The US Treasury plans to accept up to $6 billion in long-term debt, part of Secretary Scott Bessent’s expanded buyback program, as the bond market faces a ‘buyers’ strike’.
- •A global bond selloff, fueled by inflationary risks, strong economic data, and fiscal concerns, has seen 30-year yields hit successive milestones.
- •Resilient economic data, including climbing inflation-adjusted personal spending and higher-than-forecast private payrolls, suggests the Federal Reserve may continue raising rates.
- •Short-end relief emerged as two-year yields declined after a softer-than-expected reading of the Fed’s preferred inflation gauge, the personal consumption expenditures price index, easing October rate hike expectations.
Key Questions Answered
Thirty-year Treasury yields climbed to 5.63%, the highest since 2002, driven by resilient US consumer spending in August, heavy corporate supply, inflationary risks, and fiscal concerns.
Treasury Secretary Scott Bessent expanded a government bond buyback program—including plans to accept up to $6 billion in long-term debt—in an effort to ease market pressure and help contain yields.
Two-year yields declined by up to five basis points to 4.82%—the lowest in just over a week—following a softer-than-expected reading of the Fed's preferred inflation gauge, the PCE price index.
