30-Year Treasury Yield Hits 5.30%, Highest Since 2007, as Bond Selloff Deepens

The 30-year U.S. Treasury yield climbed to 5.30% on Monday, a level not seen since 2007, as a confluence of factors drove a broad global bond market selloff. Rising Treasury supply, persistent Middle East tensions, and AI-driven corporate borrowing all weighed on prices, while oil prices advanced alongside yields.

U.S. investment-grade bond sales set a record haul for August, marking the third consecutive monthly record, with the artificial-intelligence buildout fueling heavy corporate issuance. Separately, Treasury Department data showed foreign demand for U.S. government debt weakened sharply in June: net foreign holdings of Treasury bonds and notes rose just $6.8 billion, compared with $56.6 billion the prior month. Japan, the largest foreign holder, cut its position to $1.117 trillion from $1.143 trillion in May, while China's holdings dropped to $633 billion from $659 billion and the United Kingdom's fell to $940 billion from $949 billion.

Equity markets slipped in response to the rising yield environment, with financials and utilities sectors notably lower, while gold mining stocks bucked the trend by rallying to fresh three-month highs. Josh Brown of Ritholtz Wealth Management argued that yields passing 5% would not break the broader market, though the move has raised concerns for rate-sensitive sectors including home builders. Fed watcher commentary pointed to Fed Governor Kevin Warsh as a figure to watch, with a speech expected within roughly 11 days of the selloff.