economy
The 30-year Treasury yield just hit a 19-year high. Three things could drive it even higher
The yield on the 30-year U.S. Treasury has surged to its highest level in 19 years, and some strategists see scope for the move to go further.
TL;DR
- The 30-year U.S. Treasury yield surpassed 5.3% for the first time since June 2007.
- Global factors, including rising yields in Japan and fiscal concerns in major economies, are contributing to the selloff.
- Strong U.S. economic growth and persistent inflation could prompt further Federal Reserve rate hikes, pushing yields up.
- Increased Treasury issuance and potential commodity shocks add pressure to longer-dated bonds.
- Strategists suggest yields could reach 5.60%-5.70% and rise at an accelerated pace.