US 30-year Treasury yield climbs to 5.31%, highest since 2007
Why it matters: Higher long-term yields are pushing up federal borrowing costs and could raise mortgage and loan rates.
The yield on the 30-year US Treasury rose to 5.31% on Aug. 17, its highest level since 2007, as investors demanded more compensation to hold long-dated government debt. The move extended a sell-off that also drove the latest $25 billion 30-year bond auction to its highest yield since 2001 and pushed 10-year auction costs to their highest since 2007. The rise reflects concern over nearly $2 trillion annual federal deficits, heavy Treasury supply, stubborn inflation above the Federal Reserve’s target and weaker demand from traditional buyers. Higher yields are also rippling through the economy by increasing costs for mortgages and other loans.