US Treasury Yield Hits 20-Year High Amid Global Bond Market Selloff

The US Treasury market has seen significant movement in recent days, with the 30-year bond yield reaching its highest level since 2004. The yield rose by more than 3 basis points to 5.444% earlier this week before easing from its highs.

The increase in yields is a reflection of weakness in Treasury prices, which move inversely to yields. This trend has been ongoing for months, with global bond markets facing selling pressure due to higher energy prices, resilient economic growth, and concerns about elevated government debt.

The Federal Reserve's decision to raise interest rates last week has also contributed to the market's volatility. The Fed now has a 66% chance of raising interest rates in October, up from 53% earlier in the day. This increase in rate hike bets is driven by better-than-expected US economic figures, which have renewed inflation fears.