The Economic Times

Why are US bond yields rising? 30-year Treasury hits its highest level since 2004, but what does it mean for household budgets?

The US bond market is executing a severe repricing of the cost of money. On Thursday, the 30-year Treasury yield reached 5.48%, a peak unseen since 2004. The benchmark 10-year yield touched 5.20%, marking a 1.25 percentage point climb since early March. Because bond prices fall as yields rise, this represents a massive selloff in the world's deepest government debt market. The 30-year yield specifically measures investor willingness to finance long-term government borrowing. Demanding 5.48% shows investors require significant compensation to hold long-dated US debt.