US 30Y yield surpasses 5.20%, highest since 2007

The US 30-year Treasury yield has moved above 5.20%, touching its highest level since 2007. Long-term borrowing costs are now at a point that last prevailed before the global financial crisis.

The jump reinforces the 'higher for longer' mantra that has dominated bond markets, as traders price in a scenario where the Federal Reserve keeps rates elevated for an extended period. Rising yields typically translate into lower bond prices and tighter financial conditions, which can dampen appetite for risk assets.

The milestone comes amid a broader sell-off in government debt, with yields across the curve climbing. The move highlights ongoing concerns about fiscal deficits, sticky inflation, and the resilience of the US economy, all of which contribute to the upward pressure on long-dated yields.