The 30-year U.S. Treasury yield has hit its longest streak of elevated levels since 2006, closing above 5% for 55 consecutive trading days as of this Monday.
The 30-year U.S. Treasury yield remains under pressure due to a confluence of factors, including persistent high U.S. fiscal deficits, a surge in corporate bond issuance, and rising expectations for Federal Reserve interest rate hikes. As of this Monday, the yield has closed above 5% for a cumulative 55 trading days this year, marking the highest record for any year since 2006. The yield briefly touched 5.34% in mid-August, its highest level since 2007, and is currently at 5.27%. Although U.S. Treasury Secretary Scott Bessent announced an expansion of old debt buybacks last month to suppress long-term yields, the market generally believes its effect will be limited. Furthermore, Federal Reserve Chairman Warsh's hawkish remarks last week further strengthened rate hike expectations, with traders now pricing in a nearly 70% probability of a rate hike of approximately 17 basis points at the September meeting.
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