30-year Treasury yield tops 5.33%, new 19-year high, on inflation and spending concerns
Long-dated fixed income hit their highest level in almost two decades amid a worsening U.S. fiscal situation and persistently higher inflation.
TL;DR
- 30-year Treasury yield fell slightly to 5.285% after hitting a fresh 19-year high.
- 10-year Treasury note yield decreased to 4.706%.
- U.S. fiscal deficit reached $432.3 billion in July, with year-to-date shortfall near $1.8 trillion.
- Interest payments on national debt cost the government about $1.2 trillion this year.
- Inflation rates remain above the Fed's 2% target.
- Middle East tensions contributed to rising oil prices and potential disruption of the Strait of Hormuz.
- Global bond yields, including Japan's 10-year and Germany's 30-year, reached multi-decade highs.
- U.S. import prices fell 0.4% in July, contrary to economists' expectations.