U.S. Treasury yields rose on Tuesday as investors continued to dump bonds on fears that inflation could reignite. of 30 year treasury Yields have reached their highest level in about 19 years.
The 30-year Treasury yield rose more than 3 basis points in recent trading to 5.183%. During trading, it briefly hit 5.197%, the highest level since July 2007.
The yield on the 10-year Treasury note, a key measure of mortgage, auto loan and credit card debt, rose 4 basis points to 4.667%. In early trading, it rose to 4.687%, its highest level since January 2025. The two-year Treasury yield, which responds to expectations for the Federal Reserve’s short-term interest rate moves, was last up 3 basis points to 4.12%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
Interest rates rose last week after a series of reports suggested inflationary pressures were reaccelerating as costs rose due to rising oil prices stemming from the conflict with Iran. The development spooked bond investors, with traders betting that the Fed’s next move would be to raise rates rather than cut them.
“This is a real problem,” Jim Raycamp, senior vice president at Morgan Stanley Wealth Management, told CNBC’s “Squawk on the Streets” on Tuesday. “When this year started, everyone expected interest rates to go down. That was part of the bull market. Now it looks like we’re going to see rate hikes.”
Higher borrowing costs for products like credit cards and mortgages could weigh on consumer spending, while higher yields could slow long-term economic growth and weigh on high stock valuations.
Ian Lingen, head of U.S. rates at BMO, said if 30-year rates manage to reach 5.25% in the coming weeks, there will be a “more sustained decline” in equity valuations.
30 year government bond yield
of S&P500 It closed 0.67% lower at 7,353.61, marking its third consecutive loss. on the other hand, Nasdaq Composite It closed 0.84% lower at 25,870.71. of Dow Jones Industrial Average It also fell 322.24 points (0.65%) to close at 49,363.88.
According to a Bank of America survey released Tuesday, 62% of global fund manager respondents expect the 30-year Treasury yield to reach 6%, the highest level since late 1999 and an increase of about 85 basis points from current prices. Only 20% of respondents said they were targeting a 4% yield on the 30-year Treasury.
Long-term bond yields in Britain and Germany also rose on Tuesday. german yield 30 year bond 3.684%, the UK 30 year gold coin The yield rose less than 1 basis point to 5.773%. This week, Japan’s 30-year bond yield hit a record high.
— Reported by CNBC’s Alex Harring and Hugh Leask.
