Treasury Market Gets First 5% Yield in Sign of What Could Come

The 20-year Treasury bond offered a grim warning as a selloff fueled by inflationary angst gripped global debt markets: 5% yields are already here.

The 20-year yield, a laggard on the US government debt curve since its re-introduction in 2020, topped 5% Wednesday for the first time since 2023. The move, fueled in part by concern that President-elect Donald Trump’s policies will rekindle price pressures and lead to wider deficits, indicates what’s potentially next in the $28 trillion Treasury market.

The 30-year yield topped 4.96%, while the 10-year rose as much as four basis points to nearly 4.73% — just shy of its highest level since November 2023. The moves echoed the run-up in yields seen in the UK and across emerging markets.

“The US market is having an outsized effect as investors grapple with sticky inflation, robust growth and the hyper-uncertainty of incoming President Trump’s agenda,” said James Athey, a portfolio manager at Marlborough Investment Management.

https://finance.yahoo.com/news/key-us-treasury-yields-approach-134001674.html

Bond traders are anticipating higher inflation this year due to Trump's expected economic policies. As if we didn't already know...