Three things that could drive it even higher
The yield on 30-year U.S. Treasury bonds has reached its highest level since 2007, driven by global fiscal concerns and rising yields in other developed markets. Strategists warn that yields could climb further as investors demand higher returns amid persistent economic strength and international market pressures.
Why it matters
Rising Treasury yields increase borrowing costs for the U.S. government and consumers, potentially impacting mortgage rates and broader economic growth.
The yield on the 30-year U.S. Treasury has surged to its highest level in nearly two decades, and some strategists see scope for the selloff in long-dated government bonds to go further.
The 30-year Treasury yield, which is typically sensitive to geopolitical events, advanced more than 4 basis points to 5.311% on Monday, reaching its highest level since June 2007. Foreign holdings of Treasurys fell in June, the Treasury Department reported on Monday, with top holders U.K., China and Japan all reducing their holdings.
"Long-term yields look likely to push up to 5.60%-5.70% and likely move up at a quicker pace than normal given the recent resolution of this three-year triangle pattern," said Fundstrat technical strategist Mark Newton.
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