US 30-Year Treasury Yield Hits 5.06% at Auction, Highest Since 2007
The US sold 30-year bonds at a 5.06% yield, the highest auction result since 2007, as long-term yields rise amid growing debt burden and competition from AI-related corporate debt issuance.
The cost of financing US debt continues to climb. On Tuesday, the Treasury auctioned 30-year bonds at a yield of 5.06%, the highest auction result since 2007. The 30-year yield itself has jumped back above 5.00%, though it remains below the May 20 peak of 5.20% — also the highest since July 2007.
In early 2022, comparable maturity auctions yielded around 2.00%. The sharp increase reflects a combination of swelling US debt, heavier Treasury supply, rising inflation risks, and concerns over future borrowing needs. To attract buyers, the government must offer higher yields.
Adding to the pressure, the AI investment boom has led tech companies to issue record amounts of debt to fund infrastructure, competing with the Treasury for the same capital pool and pushing long-term borrowing costs even higher.
Source: The Kobeissi Letter