Treasury Yields Hit 2007 Highs as Fixed-Income Income Returns
The 10-year Treasury yield has risen above 5.10% and the 30-year above 5.44%, both the highest since 2007, while corporate credit yields have also climbed to recent highs.
US government bond yields have returned to levels last seen in 2007. The 10-year note yield is trading above 5.10%, while the 30-year yield has reached 5.44%.
Corporate fixed income has also repriced higher. Investment-grade credit now yields 5.7%, the highest since April 2024, and high-yield credit yields 7.5%, the highest since May 2025.
Other income categories show a similar trend: private credit offers 8.3%, while money market funds yield 3.6%. This contrasts with the previous decade's near-zero rate environment, when traditional fixed income produced little income. The higher-for-longer backdrop is supporting meaningful income opportunities.
Source: The Kobeissi Letter