US bond yields have surged as sticky inflation, resilient growth, and global yield spillovers push investors to scale back expectations for Federal Reserve cuts and price in pauses and higher rates for longer. At the same time, persistent fiscal deficits, heavy Treasury supply, and rising debt sustainability concerns are driving investors to demand extra compensation to own long-term government debt.
While shorter-term rates have risen as well, the move has been particularly notable in long-term Treasuries. This week, the 30-year yield hit its highest level in 19 years.
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