US Treasury Yields Soar, Gold Prices Hit $4,600 Per Ounce

The US Treasury market has been making headlines in recent weeks due to rising yields, particularly on the 30-year Treasury bond. The yield reached as high as 5.34%, levels not seen since 2007, causing concerns over high inflation and government debt.

The US Treasury Department responded by increasing its buyback operations for 10- to 20-year and 20- to 30-year Treasury bonds from $2 billion to $4 billion to support market liquidity. This move raised hopes that selling pressure in the bond market would ease, but the yield rose again towards the end of the week.

Dr. Kutay Gozgor, research director at Kuveyt Turk Investment Research, warned that this was not a permanent solution to structural problems, but rather a temporary measure. He stated that as long as the US's record budget deficits and elevated inflation expectations remain on the table, the term premium investors demand for long-term uncertainty will remain high.