US 30-Year Yield Hits 5.27%, Highest Since June 2007
The US 30-year Treasury yield rose to 5.27%, the highest since June 2007, marking a 450-basis-point increase from its 2020 low. Fed Chair Warsh insists markets should operate independently, even as yields climb.
The US 30-Year Treasury note yield has climbed to 5.27%, a level last seen in June 2007. The move marks a 450-basis-point rally from the pandemic-era low in 2020.
At the current pace, 30-year mortgage rates in the US may exceed 7.50% by year-end. Despite the sharp rise, Fed Chair Warsh maintains that financial markets should function without central bank guidance.
The bond market is repricing aggressively, driving yields higher even in the absence of official rate hikes. This dynamic is consistent with Warsh's preference for a market-led rate environment.
The rapid move raises concerns about sustainability, with some observers warning that the bond market is becoming a dominant force in global capital markets.
Source: The Kobeissi Letter