Analysis: Long-term U.S. Treasury Yields Hit Nearly Three-Year Highs, Inflation Fears Trigger Global Bond Market Sell-off

Odaily Odaily reports that U.S. long-term Treasury yields have risen to their highest levels in nearly three years, as investor concerns over accelerating inflation sparked a sell-off in the global bond market.

After President Donald Trump pressured Iran to reach an agreement to end its war, extending the rally in oil prices, the 30-year Treasury yield rose by 4 basis points to 5.16%, the highest level since October 2023. The 10-year and 2-year Treasury yields touched 4.63% and 4.10%, respectively, their highest since February 2025. In Japan, the 30-year government bond yield surged by 20 basis points to 4.2%, the highest since issuance began in 1999.

Bond traders often view the 5% yield level on the 30-year U.S. Treasury as a "line in the sand," believing it attracts bargain-hunting buyers. Guneet Dhingra, Head of U.S. Interest Rate Strategy at BNP Paribas, said: "There's no anchor point above 5%." He advised clients to watch the 5.25% to 5.5% trading range for the 30-year Treasury. (Jin Shi)