economy
US long-term borrowing costs hit 25-year high, as inflation fears hit bond sale
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
TL;DR
- The US government paid the highest borrowing costs in 25 years to sell long-term bonds.
- An auction of 30-year US Treasury bonds incurred a yield of 5.216%, the most since 2001.
- Investors are demanding a heavy premium due to concerns over inflation and the country's rising national debt.
- Higher yields suggest investors anticipate persistent high inflation and interest rates.
- This increases the cost for the Treasury Department to fund the growing deficit, exacerbated by spending plans, tax cuts, and tariff refunds.