#US30YBondAuctionYieldHighestSince2001 đšUS Treasury borrowing costs just hit a 25-year high:
Thursday's 30-year Treasury auction cleared at a yield as high as 5.22%, the highest since August 2001.
That compares with 5.06% at the previous auction and just 4.91% in January 2025.
The move comes as US national debt has surged to nearly $40 trillion, with the debt-to-GDP ratio surpassing 120%, second only to the 2020-2021 crisis peak.
Meanwhile, inflation remains well above the Fed's target at 3.4%, and has been above 2% for 65 consecutive months, also increasing the yield investors demand to lock up capital for 30 years.
The 10-year Treasury auction one day earlier also cleared at its highest yield since 2007, highlighting broadening pressure across the long end of the curve.
Demand has not collapsed, with the 30-year auction's 2.39 bid-to-cover ratio above its six-auction average, but investors are increasingly demanding higher compensation for absorbing America's growing debt burden.
US debt costs are rising at an ALARMING RATE.$PROM $PROVE $AKE
Thursday's 30-year Treasury auction cleared at a yield as high as 5.22%, the highest since August 2001.
That compares with 5.06% at the previous auction and just 4.91% in January 2025.
The move comes as US national debt has surged to nearly $40 trillion, with the debt-to-GDP ratio surpassing 120%, second only to the 2020-2021 crisis peak.
Meanwhile, inflation remains well above the Fed's target at 3.4%, and has been above 2% for 65 consecutive months, also increasing the yield investors demand to lock up capital for 30 years.
The 10-year Treasury auction one day earlier also cleared at its highest yield since 2007, highlighting broadening pressure across the long end of the curve.
Demand has not collapsed, with the 30-year auction's 2.39 bid-to-cover ratio above its six-auction average, but investors are increasingly demanding higher compensation for absorbing America's growing debt burden.
US debt costs are rising at an ALARMING RATE.$PROM $PROVE $AKE