- Yields on 30-year US Treasuries rose to highest since 2002 amid selloff in debt markets
- Higher energy prices and strong corporate debt supply increased inflation and market pressure
- Global bond volatility driven by Middle East conflict and expectations of Fed rate hikes
Yields of the longest-dated US Treasuries rose for a sixth consecutive session on Tuesday, September 29, hitting highest level since 2002, Bloomberg reported. The 30-year yield rose above 5.61% amid intensifying selloff across global debt markets.
The surge in yields came as higher energy prices raised inflationary pressures and strong corporate-debt supply weighed on the market. Reaching the 2002 high isthe latest in a series of milestones for the $32 trillion Treasuries market, which is witnessing months-long selloff. Government debt has been volatile around the globe as elevated oil prices, driven by the war in the Middle East has impacted the global economy, pushing investors to bet central banks including the Federal Reserve, which is likely to raise interest rates.
Growing business activity and worries over government debt levels in the US have given additional boost to what has become the biggest Treasury selloff since Trump's tariff rollout in April 2025 that rattled global markets.
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According to Citigroup Inc strategists cited by Bloomberg, theTreasury market is going through a “light buyer's strike,” while Yardeni Research says that yen-funded carry trade — a strategy that involves borrowing in the Japanese currency and investing in assets that offer higher returns is fueling the selloff.
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Meanwhile, Wall Street veteran Jim Bianco witnesses an opportunity as Treasury Yields rose. For teh first time in six years, he is turning bullish on Treasurie, while long-time bond investor Chris Iggo said bonds are expected to rebound after four tough years. RBC BlueBay Asset Management CIO Mark Dowding said the selloff in the global bond market is overdone, the publication reported.
US Treasuries have declined 2.6% so far this year, against a 6.3% gain last year. The selloff has hit debt across maturities, with the 10-year yield, at 5.28%, trading at its highest since 2007. Two-year yields are at about 4.93%, the last major maturity to linger below 5%.
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