U.S. 30-Year Treasury Yield Tops 5.18%, Highest Since 2007

U.S. 30-year Treasury yields climbed to 5.181% on Tuesday, the highest level since 2007, as renewed inflation fears fueled a broad selloff across global bond markets. The last time the U.S. 30-year yield traded around these levels was in 2007, shortly before the global financial crisis, when yields rose across the curve. Recent selling has since pushed government bond yields in multiple markets to multiyear highs. Investors are demanding greater compensation to hold long-dated bonds amid concerns about war-driven energy price spikes and widening budget deficits. A sustained rise in yields could lift U.S. mortgage rates and corporate borrowing costs, adding downside risks to U.S. growth. Ajay Rajadhyaksha, Barclays' Global Head of Research, wrote: "With global debt growing faster than economic growth, inflation worsening, and a lack of political will for fiscal reform, investors have little reason to hold long-term bonds." (Jinshi)