US 30-Year Treasury Auction Yield Hits 5.058%, Highest in 19 Years

The yield on the 30-year U.S. Treasury bond at auction has reached its highest level since 2007.
Analysts suggest that the expansion of government bond supply is compelling investors to demand higher yields.
Bloomberg reported that the auction yield for the 30-year U.S. Treasury bond on July 9 (local time) was 5.058%, marking the highest level since 2007, when the subprime mortgage crisis began to emerge.
However, the yield was lower than the 5.061% seen in pre-auction trading, which is interpreted as demand exceeding expectations.
Unlike short-term bonds that are sensitive to the base interest rate, the 30-year yield moves based on expectations for economic growth, inflation, and government borrowing demand. All of these factors have acted as upward pressure over the past year.
Meanwhile, in the secondary market on the same day, the 30-year U.S. Treasury yield rose to as high as 5.095% during the session before paring gains as the surge in oil prices stabilized.
Yields on 2- to 7-year bonds fell by approximately 5 basis points (0.05 percentage points), while long-term bond yields declined by 2 to 4 basis points each.
Some analysts suggest that the solid demand for government bonds this week reflects confidence in the commitment of Federal Reserve Chair Kevin Warsh to curbing inflation.
The 30-year yield had fallen to 4.82% at the end of last month but returned to an upward trend following the first Federal Open Market Committee (FOMC) meeting since Chair Warsh took office.
Yields on Treasury Inflation-Protected Securities (TIPS) are also on the rise.
The real yield on the 30-year TIPS climbed to 2.89% on this day, reaching its highest level since 2008, before closing at 2.86%.
(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.