US 30-Year Bond Yield Soars to 23-Year High Amid Deficit Spending and Inflation
The US 30-year Treasury yield has reached its highest level since 2002, hitting 5.623% amidst record deficit spending and persistent inflation.
This significant increase in long-duration sovereign debt is a result of two compounding structural forces: record levels of US deficit spending increasing bond supply, and persistent inflation keeping long-run rate expectations elevated.
The quarterly chart shows a V-shaped recovery from the 2020-2021 trough back to early 2000s highs, with the yield opening at 5.637%, reaching a session high of 5.692%, and currently printing at 5.623%.
Historically, periods of sustained high long-bond yields have compressed equity multiples and accelerated rotation into inflation-resistant stores of value, including Bitcoin, commodities, and real estate.