The yield rose to its highest level since 2001 at an auction of 30-year U.S. Treasury bonds. Rising government debt and inflation concerns are behind the move.
The yield reached a 19-year high at an auction of 30-year U.S. Treasury bonds, drawing increased market attention. The auction results are being viewed as reflecting expanding government debt and inflation concerns.
The expansion of the fiscal deficit and inflationary pressure in interest-rate markets are cited as contributing to rising pressure on long-term yields.
Market caution over the FRB’s monetary policy decisions is spreading, and some observers believe attention is shifting from expectations of rate cuts to the prospect of additional hikes.
The turmoil in the bond market is compounded by uncertainty surrounding the global economy, including higher oil prices, and some reports say investors are becoming more risk-averse.