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U.S. Treasuries face relentless selling: 10-year and 30-year yields both reach new highs in nearly 20 years

PANews reported on September 24, citing The Wall Street Journal, that ultra-long-dated bonds are under pressure as investors reassess the outlook for U.S. inflation, fiscal deficits, and long-term interest rates, further reinforcing the “higher long-term yields” trend across global bond markets. The U.S. Treasury market has seen a new wave of selling, with the 30-year U.S. Treasury yield extending its rise to the highest level since 2004. The U.S. 30-year Treasury yield at one point on Thursday approached 5.45%, renewing its highest level since 2004. The 10-year U.S. Treasury yield at one point reached 5.14%, a new high since 2007. The rapid rise in yields reflects investors demanding greater compensation for long-term risk amid the risk of persistently widening U.S. fiscal deficits, rising government debt, and a potential resurgence in inflation. The core shift in the bond market is that investors are no longer focused solely on the Federal Reserve’s short-term policy rate, but are beginning to reprice long-term U.S. fiscal and inflation risks.

Source: https://www.panewslab.com/zh/articles/01a0d2c1-553e-767a-92d8-ff22481593a6