30-Year US Treasury Yield Surpasses 5.19%, Highest Since Before the Financial Crisis
As investors continue to sell off bonds over fears of resurgent inflation, U.S. Treasury yields rose on the 19th. The 30-year U.S. Treasury yield briefly touched 5.197%, a new high not seen since July 2007, nearly 19 years ago. Market analysts note that this trend reflects traders betting the Federal Reserve's (Fed) next move may be a rate hike instead of a cut, which could trigger a stock market correction if yields continue to climb.
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- 📰 Published: May 20, 2026 at 09:15
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(CNA, Washington, 19th, Comprehensive Foreign Report) U.S. financial media outlet CNBC reported today that as investors continued to sell off bonds amid fears of resurgent inflation, U.S. Treasury yields rose today, with the 30-year Treasury yield climbing to its highest level in nearly 19 years. The 30-year U.S. Treasury yield rose more than 3 basis points to 5.183%, at one point touching 5.197% during the session, its highest level since July 2007. The 10-year U.S. Treasury yield—a benchmark for mortgage, auto loan, and credit card debt rates—rose 4 basis points to 4.667%, rising to 4.687% intraday, the highest since January 2025. The 2-year U.S. Treasury yield, which typically reflects market expectations for the Federal Reserve's (Fed) short-term interest rate policy, rose 3 basis points to 4.12%. One basis point equals 0.01%, and bond yields move inversely to prices. A series of reports last week unsettled fixed-income investors, suggesting that inflationary pressures could rise again as higher oil prices, driven by the U.S.-Iran conflict, push up costs. This has also led traders to start betting that the Fed's next move might be a rate hike rather than a cut. Jim Lacamp, Senior Vice President at Morgan Stanley Wealth Management, said on CNBC's 'Squawk on the Street,' 'This is a real problem. At the beginning of the year, everyone expected rates to come down, and that was one of the big reasons for the bull market. Now it looks like we could be seeing a rate hike.' Ian Lyngen, head of U.S. rates at BMO Capital Markets, noted that if the 30-year Treasury yield rises to 5.25% in the coming weeks, stock market valuations could see a 'more sustained pullback.' A survey released by Bank of America today showed that 62% of global fund managers expect the 30-year U.S. Treasury yield to climb to 6%, which would be its highest level since the end of 1999 and about 85 basis points above current levels. Only 20% of respondents expect the 30-year yield to remain at 4%. Long-term government bond yields in the UK and Germany were also at high levels today, with Germany's 30-year bond yield at 3.684%, and the UK's