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[BUSINESS] · United States · 11 sources

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US Treasury bond yields hit multi-decade highs in recent auctions

US Treasury bond auctions have seen significant yield increases, signaling rising borrowing costs for the federal government. A $25 billion auction of 30-year Treasury notes on August 13, 2026, saw yields reach as high as 5.22%, the highest level recorded since 2001.

This follows a $42 billion auction of 10-year Treasury bonds that cleared at a 4.683% yield, the highest since 2007. These rising long-term yields reflect investor concerns regarding persistent inflation, large federal deficits, and the growing national debt, which has exceeded $32 trillion.

The surge in yields highlights a tension between the Trump administration's fiscal policies and the Federal Reserve's inflation management. While some officials suggest the Fed may maintain current rates due to cooling inflation data, others warn that prolonged high inflation could entrench price expectations. The increased cost of servicing debt is also notable, with interest payments now exceeding national defense spending.

Entities

AmeriVet Securities · Donald Trump · Federal Reserve · Kevin Warsh · Scott Bessent · US Treasury Department · United States · United States Department of the Treasury

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