US 30-year Treasury yield climbs to 5.31%, highest since 2007

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 sell-off also pushed the 10-year yield to about 4.72%, after a recent auction drew the highest financing cost since 2007. The move reflects concern over nearly $2 trillion annual budget deficits, stubborn inflation above the Federal Reserve’s 2% target and heavy corporate bond issuance tied to the artificial intelligence investment boom. Treasury financing costs have totaled $1.12 trillion through July, CNBC reported. Higher yields are also rippling into consumer borrowing costs, raising pressure on mortgages and other loans even as some recent inflation data has moderated.