US 30‑year Treasury Yields Hit Unusual Highs Amid Fiscal Concerns

US 30‑year Treasury bonds have yielded above 5% for 27 days in 2026, marking the longest uninterrupted period above that level since 2007. The rise occurs despite the Federal Reserve’s policy rate being about 150 basis points lower, indicating investors demand higher compensation for holding long‑term debt amid worries about soaring U.S. deficits and inflation.

The trend mirrors a broader shift in sovereign markets, where G‑10 governments such as Germany and the United Kingdom now offer secured euro‑denominated yields of over 4% for two‑ to five‑year maturities. Analysts note that expanding public‑sector borrowing is increasing bond supply, which pushes yields up while investors seek reliable returns in an environment of high fiscal deficits.