US Treasuries Hit by Relentless Sell-Off: 10-Year and 30-Year Yields Both Reach Nearly 20-Year Highs

PANews, September 24 – According to a Wall Street Journal report, as investors reassess the outlook for US inflation, fiscal deficits, and long-term interest rates, ultra-long-dated bonds are under pressure, further reinforcing the "higher-for-longer yields" trend in global bond markets. The US Treasury market suffered a fresh round of selling, with the 30-year Treasury yield extending its highest level since 2004.

The 30-year US Treasury yield briefly approached 5.45% on Thursday, extending its highest level since 2004. The 10-year Treasury yield briefly reached 5.14%, a new high since 2007. The rapid rise in yields reflects investors demanding higher long-term risk compensation to contend with the persistently widening US fiscal deficit, mounting government debt, and the risk that inflation could flare up again.

The core shift in the bond market is that investors are no longer focused solely on the Fed's short-term policy rate, but are beginning to reprice long-term US fiscal and inflation risks.