US 30-Year Treasury Yield Holds Above 5% for Longest Stretch Since 2006

Forecast Trend Report by Period

Concerns over the US fiscal deficit, a surge in corporate bond issuance and uncertainty around Federal Reserve policy have kept the 30-year Treasury yield above 5% for the longest stretch since 2006.

Bloomberg reported on August 31 that the US 30-year Treasury yield rose as high as 5.34% in mid-August, the highest since 2007. That was just 0.10 percentage point below its highest level of the past 22 years. Through August 31, the 30-year yield had traded above 5% on 55 days this year, the most since 2006. The yield was around 5.27% on September 1.

US Treasury Secretary Scott Bessent announced last month an expansion of existing Treasury buybacks to help lower long-term yields. Investors, however, see the effect as limited. A record volume of corporate bonds was issued last month, and roughly $215 billion of new corporate bond sales is expected in September. Concerns over the US government's large fiscal deficit have also persisted.