30-year U.S. Treasury Yield Hits 2002 High Amid Widening Debt Sell-off
The yield on the U.S. 30-year Treasury rose above 5.61%, a level not seen since 2002, as investors flee a deepening global debt sell-off.
On Tuesday the yield of the United States 30-year Treasury surpassed 5.61%, a peak last reached in 2002, as the global debt market experiences a pronounced sell-off. The rise reflects heightened inflation concerns and a flood of corporate debt, with the market awaiting a sizable buyer that has yet to appear. New York Fed President John Williams suggested another policy rate increase could be appropriate in late 2026, tempering expectations of near-term hikes.
The two-year Treasury yield slipped to around 4.89% after his remarks, while the 10-year yield hovered near 5.25%, its highest since 2007. Large issuances, including Paramount Skydance’s $52 billion bond deal, are adding further pressure, and strategists warn that seasonal factors and ongoing geopolitical tensions could keep Treasury volatility elevated through October.
Why it matters
Rising long-term yields raise borrowing costs for governments and corporations, affecting the broader economy.
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