The US 30-year Treasury yield climbed to 5.239% on July 29, marking the highest level since 2007.
The move matters for every corner of financial markets, from equities to crypto. When the safest investment in the world starts paying north of 5%, the calculus for holding anything riskier changes fast.
What’s driving the yield spike
Three forces are converging to push long-term rates higher. First, inflation remains stubbornly persistent. Oil prices have breached $92 per barrel amid escalating geopolitical tensions in the Middle East, adding fuel to price pressures that the Federal Reserve has been trying to extinguish.
Second, the Fed itself is sending mixed signals. The central bank held interest rates steady at its July meeting, but the decision wasn’t unanimous. Three policymakers dissented, pushing for additional hikes.
