Long-term bond yields rise as 10-year nears 4.4% and 30-year tests 5%
Updated
Updated · Real Economy Blog · May 4
Long-term bond yields rise as 10-year nears 4.4% and 30-year tests 5%
13 articles · Updated · Real Economy Blog · May 4
The 30-year U.S. Treasury later crossed that threshold to 5.006%, its third move above 5% since July and April 30.
The report cites a historic supply shock, expansionary fiscal policy, higher defence spending and rising expectations for short-term rates as drivers lifting term premiums and long-end borrowing costs.
Yields at the top of recent ranges signal greater uncertainty, raising capital costs and slowing growth, while stoking concern about inflation, fiscal sustainability and a potential bond-market selloff.
How will escalating Middle East tensions and record oil prices shape the Federal Reserve's next interest rate decision?
Is the U.S. government's massive debt finally forcing a permanent reality of higher interest rates for everyone?
With bond yields now rivaling stock returns, is the era of equity dominance officially over for investors?