30-Year Treasury Yield Hits 19-Year High as Global Bond Rout Drags Stocks Lower for Third Straight Day

A sweeping selloff in global sovereign bonds pushed the yield on the 30-year U.S. Treasury to 5.34% on Tuesday, its highest level since 2007, while the 10-year yield rose to 4.74%, near the highest of the current presidential term. The rout is worldwide: German 30-year bund yields hit levels last seen in 2011, French 30-year borrowing costs reached post-2008 highs, U.K. gilt yields approached 6%, and Japan's 10-year bond yield scored a 30-year peak.

The S&P 500 fell for a third consecutive session, with tech stocks particularly hard hit as rising long-term rates compress valuations. Deutsche Bank strategist Jim Reid cited persistent geopolitical pressure, including an extended closure of the Strait of Hormuz, as compounding inflation fears, though he noted there was no single catalyst. Fundstrat technical strategist Mark Newton warned that 30-year Treasury yields could climb further to 5.60%-5.70%.

Wall Street broadly sees no near-term end to the selloff. Attention turns to Wednesday, when U.S. government debt levels will be in focus as Washington's growing deficit adds to concerns about the long-term supply of Treasuries flooding the market.