Commodities
US 30-Year Debt Yield Hits Fresh High Since 2004 Amid Rate Hike Expectations
The US government's 30-year debt yield reached its highest level since 2004, rising to 5.53% on Thursday.
This increase comes despite oil prices dropping by 2.3%, which has historically been a key driver of Treasury yields during supply shocks.
RBC Capital Markets' US rates strategist, Izaac Brook, noted that the lack of technical levels for traders to hang onto is contributing to the ongoing rise in yields.
Monty Gandhi, rates strategist at SMBC Group, also observed that short-term investors are buying up front-end debt, expecting higher energy prices and subsequent rate hikes from the Federal Reserve.