Long-term Treasury yields hit their highest level since the global financial crisis in 2007 on Tuesday, highlighting broader investor concerns about inflation and fiscal policy in the U.S., as some analysts anticipate a steeper selloff for bonds.
The U.S. national debt approached $39 trillion as analysts warned about long-term inflation.
Yields on 30-year U.S. Treasury notes rose just over 5.19% as of Tuesday morning, the highest level for the long-term bonds since June 2007, while 10-year yields—a gauge for mortgage rates, auto loans and credit card debt—climbed to 4.68%, their highest level since January 2025.
A survey of global hedge fund managers published by Bank of America on Tuesday found that 62% of respondents believe 30-year yields will hit 6%, potentially matching their highest level since 2007, as 40% of managers anticipated a further surge in inflation.
Ajay Rajahdyaksha, Barclays’ global chairman of research, wrote Monday the U.S. debt was rising faster than its economic growth, inflation is expected to be higher or more volatile and there’s “no political will for fiscal reform,” adding investors are not motivated to purchase long-term bonds.
